Steve Eisman of “The Big Short” fame has been bullish on infrastructure stocks after studying the industry for the past two years, and here are the companies he likes the most. The investor who called and profited from the subprime mortgage crisis grew fond of infrastructure companies on the back of increased government spending. Eisman, senior portfolio manager at Neuberger Berman, said he has narrowed the universe of investable stocks to 80 stocks. “Of those 80, I would say about 30 are very, very interesting. The other 50 are not so interesting at this point,” he said in Bloomberg’s “Odd Lots” podcast . The stocks Eisman passed up included residential solar companies, which already had a great run during the pandemic as major beneficiaries of zero interest rates. However, as rates stay higher, these stocks have stalled, Eisman said. Instead, Eisman likes solar panel companies that sell to utilities, which he said are doing well from a fundamental perspective. Eaton Corporation , which is involved in electrification for factories, is one stock that he finds attractive. Eisman said he doesn’t own the stock currently, but did a lot of research on the firm. The stock is up 36% this year after a 53% rally in 2023. ETN 1Y mountain Eaton Corporation PLC The widely followed investor also revealed he likes CRH PLC , a materials company headquartered in Ireland but 75% of their businesses are in the U.S. CRH has gained about 24% this year following a 73% advance last year. Eisman said he started buying after the companies relisted in the U.S. in September. CRH 1Y mountain CRH PLC Eisman shot to fame by betting against subprime mortgage loans before the 2008 financial crisis, as chronicled in Michael Lewis’ “The Big Short” and the subsequent Oscar-winning movie based on the book. — Click here to listen to the original podcast.
