Manufacturers of products such as bulldozers, asphalt pavers and steel have been among the hottest stocks since Donald Trump was elected president. That’s because he plans up to $1 trillion in spending over the next decade to modernize bridges, roads, airports and other infrastructure. But investors should be wary. Many of these stocks have become -overvalued, and it’s unclear how much of the spending actually will occur. For the best opportunities, look for stocks that still have modest valuations and that can do well even if Trump’s ambitious agenda is scaled back.

My favorite infrastructure stocks…

Fluor (FLR). The engineering company, which already counts the federal government among its major clients, specializes in the kind of complex, high-profile projects that the Trump administration is likely to promote. Fluor is currently working on the span that will replace the Tappan Zee Bridge in New York, and it has a $44 billion backlog of planned projects.

Macquarie Infrastructure (MIC) owns a variety of aviation and energy infrastructure businesses in the US ranging from airport operations to bulk petroleum storage, a business likely to expand if Trump eases oil drilling and pipeline restrictions.

MDU Resources Group (MDU) often is regarded by investors as an unexciting utility company because it provides natural gas and electricity to one million customers in eight states ranging from Washington to Minnesota. But about two-thirds of its revenue now comes from its construction divisions. MDU is one of the top 10 US producers of aggregate (crushed stone, sand and gravel). The stock rose more than 60% in 2016, but after double-digit share-price losses in 2014 and 2015—due to slowdowns in its recently divested oil and natural gas production business—there is plenty of upside left.

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