Today’s Stock of the Week stands to benefit as spending on infrastructure projects increases.

Building Business

US Concrete Inc. (USCR) sells ready-mixed concrete and related products to contractors, government agencies, property owners and developers.

Investors hammered the stock for several months as shipments were delayed in north Texas, where the company does about 25% of its business. But that was a short-term, weather-related issue—concrete cannot be poured when it rains, and the area had some of its rainiest weather ever through the third quarter of 2016.

North Texas has very high growth and is home to a number of Fortune 500 companies with more planning to build there. And US Concrete is in other major growth regions. About 25% of revenue comes from northern California and 34% from the New York-New Jersey area, where the company is one of three working on expansion of LaGuardia Airport. Earnings show steady growth, and revenue of $975 million in 2015 should rise to $1.18 billion for 2016 and $1.4 billion in 2017.

Earnings per share: 2017 est./$3.95… 2016 est./$2.79… 2015/$1.64.

This Week’s Expert

hodges_craigCraig Hodges is portfolio manager of the $396 million Hodges Fund (HDPMX) and co-portfolio manager of the $1.3 billion Hodges Small Cap Fund (HDPSX), Dallas. HodgesFund.com