This stock is set to rise as PM Johnson prepares to unveil new infrastructure plan
- “Get Britain moving again” infrastructure plan to be presented on Tuesday by PM Johnson
- The plan consists of building new hospitals, schools, housing, and road and rail infrastructure
- CRH stock is well-positioned to rise and benefit from the government spending on infrastructure projects
Prime Minister Boris Johnson is preparing to unveil a new infrastructure plan this week called “Get Britain moving again”. Logically, the building and construction sector will be the main beneficiary with CRH stock (LON: CRH) likely to make gains on the increase in government spending.
Fundamental analysis: “Get Britain moving again”
British interior minister Priti Patel said today that PM Johnson will unveil a new plan this week to get the country going following the lifting of lockdown measures. Boris Johnson is scheduled to make a speech on Tuesday and commit to building of new hospitals, schools, housing, and road and rail infrastructure.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
“It’s an important plan … As we move out of this awful, awful period of coronavirus, this dreadful disease, we want to get Britain moving again,” Patel said.
“We are building now very much a road to recovery, a roadmap, focusing on infrastructure right now … focused on roads, broadband, the type of things that effectively help to create jobs but also provide services and economic growth and opportunity around the country.”
Last week, Johnson lifted restrictions on pubs and restaurants, which are set to open on July 04, paving the way for certain stocks to rise.
UK investors are now hoping that their country will follow the United States in the market recovery. Invezz reported last week that the number of newly built homes rose 12.7% in May, compared to a year ago. Additionally, May data shows an increase of 16.6% compared to April.
Logically, the construction and building sector should be the prime beneficiaries of the new infrastructure plan. Hence, no one is in a better position to win large contracts than the Ireland-based CRH.
The firm manufactures and distributes a wide range of building and construction products, such as cement, concrete, bitumen etc. CRH registered a revenue of over 25 billion euros in 2019.
Technical analysis: The recovery almost completed
CRH stock price has rallied aggressively from the multi-year lows printed in March. The recovery has been almost completed, with the stock price nearly at the levels registered in early February.
Investors are now likely to invest in CRH given its impressive construction portfolio. CRH share price is now testing critical short-term resistance near 2900p while the 13-year high is sitting at 3116p.
The PM Johnson is set to unveil a new plan on Tuesday to build new hospitals, schools, housing, and road and rail infrastructure. CRH stock is set to benefit from the plan given its impressive portfolio of construction and building products.