Is infrastructure the best option to speed recovery?

They were attacked by investors after the housing bubble and cutbacks in public spending, but now Spanish infrastructure companies could lead the recovery race if the stock market bounces back more than was predicted. Shares of Ferrovial, Técnicas Reunidas, OHL, Acciona and Abengoa are getting the green light from experts. Only five other non-infrastructure companies on the Ibex 35 made the cut as well (Repsol, IAG, Ebro Foods, ArcelorMittal and Amadeus).

The market's attention is focused on the United States Federal Reserve's next move. They plan to meet in September and could announce a QE3 stimulus. QE3 would, by default, cause markets to rebound, a situation that would propel the infrastructure sector. "The stock market could shoot up dramatically and infrastructure companies would ride this wave of the business cycle," noted Soledad Pellón, an analyst from IG Markets.

Sector Opportunities

The major projects some of the companies are working on outside of Spain and the possibility that the federal government could create incentives for the sector are two other reasons to think Spain is in a privileged position for the months ahead. Técnicas Reunidas has the greatest potential within the sector, considering that consensus market predictions from Fact Set expect shares to rally more than 70%. Experts predict that shares are could be worth 45.05 euros.