We just experienced what seemed like the most contentious and intense Presidential election race in the history of the United States. At times, it was so crazy that it seemed very possible that the country would splinter into two or more pieces. There just couldn’t be an incumbent and same-party candidate more different than the opposing party. 

#-ad_banner-#And now the election is over. A new President and political party will be leading us for the next four or more years under a very different philosophy.

Despite the radical differences between the incumbent and incoming Presidents, there is one thing that they have in common. As an investor, this similarity will tell you where to deploy your capital over the next several years. On a grander scale, it will dictate the direction of the entire domestic economy.

This one commonality is infrastructure spending. Both Obama and Trump are very supportive of improving our nation’s crumbling infrastructure. Investing in the leaders in this sector should therefore make a profitable investment over the next few years. 

Here’s why:

In 2015, Obama signed into law the first long-term transportation bill passed by Congress in a decade. Known as the FAST (Fixing America’s Surface Transportation) Act, this bill primarily acts to increase infrastructure funding. 

The FAST Act approves $305 billion in highway and transit spending through 2020. The goal of this legislation is to improve the nation’s surface transportation infrastructure, including our roads, bridges, transit systems, and rail transportation network.  The U.S. Department of Transportation considers the act to be a “down payment” for building a 21st-century transportation system.

The bill reforms and strengthens transportation programs to refocus on national priorities. This provides for long-term certainty and more flexibility for states and local governments, streamlined project approval processes, and a strong commitment to safety.

President-elect Donald Trump not only agrees with Obama on ramping up infrastructure spending, he has plans to supercharge infrastructure further by spending up to $1 trillion. Trump plans to fund the spending with $140 billion in tax credits and possibly even embracing the Democrats’ concept of an infrastructure bank. 

Bloomberg reports that, “outgoing President Barack Obama has also proposed a U.S. infrastructure bank to lend at maturities as long as 35 years to fund transportation, water and energy projects. Such an entity would potentially emulate organizations from China, which led the establishment of the Asian Infrastructure Investment Bank in 2015, and Canada, where Prime Minister Justin Trudeau’s government is creating a bank to provide low-cost financing for infrastructure projects.”

The bottom line here is that, regardless of where the capital comes from, a massive increase in infrastructure spending is about to take place. It has bi-partisan support, the public loves the idea, it is much needed, and our new president’s background is in construction. The odds are high that we will see greater and greater infrastructure spending into the future.

I have identified four stocks whose share price and profits are tied directly to the ramp-up in infrastructure spending.

Kinder Morgan (NYSE: KMI)
The new administration has a goal of ending U.S. reliance on foreign energy sources. Plans are in the works to ramp up federal land energy leases, increase offshore exploration/drilling, and end the moratorium on coal leasing.  

These changes will demand greater energy infrastructure and Kinder Morgan, the largest U.S. energy infrastructure company, will be there to provide it. The company currently hosts 84,000 miles of pipeline and 180 terminals.  

As the U.S. energy regulations start to unwind, Kinder is in an ideal position to profit from these bullish changes.

Martin Marietta Materials (NYSE: MLM)
This company is a Raleigh, North Carolina-based supplier of aggregates products for the construction industry. Aggregates are items like crushed stone, gravel, and sand. The company boasts a market cap of over $12 billion and its shares are higher by an astounding 62% on the year. 

Martin Marietta set new records for consolidated net sales, gross profit and net earnings in the third quarter. Consolidated gross margin (excluding freight and delivery revenues) grew by just over 2% while diluted EPS exploded by 43% to just under $2.50. At the same time, aggregate product line pricing climbed by 9% with magnesia specialties hitting a record gross margin (excluding freight and delivery revenues) of 38%. 

Vulcan (NYSE: VMC)
Similar to MLM, Vulcan is a $17 billion market cap producer of construction aggregates. The company’s shares are higher by 34% year to date despite missing analyst’s numbers for the third quarter. 

Summit Materials (NYSE: SUM)
Summit Materials is another aggregates supply-focused company with a just over $2 billion market cap. The company’s shares are higher by nearly 20% year-to-date. 

The latest numbers reveal the company created basic earnings per share of $0.61 and adjusted diluted earnings per share of $0.73 for adjusted net income of $73.5 million, an increase of more than 15% when compared to the prior year period.

“Sustained organic growth in aggregates and cement pricing, coupled with improved cost discipline and margin capture, contributed to significant year-over-year increases in operating cash flow and net income in the third quarter,” stated Tom Hill, CEO of Summit Materials. 

Risks To Consider: Some analysts believe that infrastructure growth companies shares have become overpriced. In fact, Bank of America just downgraded building material stocks, resulting in a sharp sell-off in stock prices across the board. 

Action To Take: I firmly think that the above-listed firms will continue to thrive in this new age of increased infrastructure spending. Use pullbacks in price as entry opportunities in the shares.

Editor’s Note: Forget Buffett, buy these 10 stocks. Since we started releasing our top 10 picks, we’ve beat the market more times than Warren Buffett… and delivered gains up to 159% in a year. To get our latest top picks — including one with an unusual amount of “political backing” — click here.​