Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Granite Construction Inc.    GVA

Delayed Quote. Delayed  - 02/09 04:02:02 pm
36.88 USD   +0.16%
02/08 Corporate winners of Obama budget still face long odds
01/21 GRANITE CONSTRU : Clinches Colorado Bridge Contract
01/19 GRANITE CONSTRU : Awarded $76 Million Joint-Venture Bridge Replaceme..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Corporate winners of Obama budget still face long odds

02/08/2016 | 03:49pm US/Eastern

Facing a hostile Congress in an election year, President Barack Obama will be hard-pressed to push through many of the proposals in his final budget as U.S. leader.

But that could be a silver lining for investors: If the long-shot plans gain traction, companies that stand to win new business or funding from proposed spending, such as auto suppliers, hospital chains and construction firms, could get an unexpected boost to their shares.

Some details of the budget plan, set to be unveiled on Tuesday, already are known. It will include $4 billion over 10 years for development of safe-driving vehicles, an area already of interest to many companies.

Added funding could benefit suppliers such as Delphi Automotive, Autoliv and Mobileye, which are developing safety features for autonomously driven cars, and Lear, which makes electrical power systems, according to Brian Sponheimer, analyst at Gabelli & Co.

"The market discounts that any proposals by this administration will be if not ignored, then outright put down," Sponheimer said. "There clearly is upside if it passes, but there is a very healthy skepticism that that is likely to take place."

Obama's plan to fund an overhaul of the nation's infrastructure through a $10-a-barrel tax on crude oil could also boost engineering and construction firms such as Granite Construction said Morris Ajzenman, an analyst at Griffin Securities. "But I give very very little probability that it comes to pass."

Similarly, Ipsita Smolinski, managing director at healthcare research consulting firm Capitol Street, said it was doubtful the Republican Congress would approve Obama's plan to aid the 19 state governments that passed up an earlier offer to expand the Medicaid program for low-income Americans.

Such a plan, she said, would benefit hospital companies including Tenet Healthcare and HCA Holdings and Medicaid insurers such as Centene and Molina Healthcare.

More palatable to Congress could be Obama's push for $755 million to jumpstart cancer research. But that level of investment without being more targeted may not benefit any specific firms, given that so many drug and biotech companies are invested in developing cancer therapies.

Major defense contractors - including Lockheed Martin, Northrop Grumman, Raytheon and General Dynamics - stand to benefit from the budget, said Sterne Agee CRT analyst Peter Arment.

"It’s an election year, national security is at the top of the priority list and a lot of elected officials – they don’t want to be tied to cutting defense," Arment said.

(Reporting by Lewis Krauskopf in New York; Editing by Andrew Hay)

By Lewis Krauskopf

React to this article
Latest news on GRANITE CONSTRUCTION INC.
02/08 Corporate winners of Obama budget still face long odds
01/21 GRANITE CONSTRUCTION : Clinches Colorado Bridge Contract
01/19 GRANITE CONSTRUCTION : Awarded $76 Million Joint-Venture Bridge Replacement Proj..
01/12 STERLING CONSTRUCTION : is Selected as Part of a JV with Granite Construction on..
01/04 GRANITE CONSTRUCTION : Named One of America's 'Most Trustworthy Companies'
2015 GRANITE CONSTRUCTION : Named One of America’s “Most Trustworthy Comp..
2015 GRANITE CONSTRUCTION INC. : ex-dividend day
2015 GRANITE : Growth Score By Zacks: Granite Construction Incorporated (Growth Score..
2015 GRANITE CONSTRUCTION : Declares Quarterly Dividend
2015 GRANITE CONSTRUCTION : 21.5% Potential Upside Now Implied by Stifel
Advertisement
News chart
Full-screen chart
Income Statement Evolution
More Financials