Chicago Bridge (CBI) is 'Best of Breed' in Energy Infrastructure Segment- Cramer - InvestingChannel

Chicago Bridge (CBI) is ‘Best of Breed’ in Energy Infrastructure Segment- Cramer

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Chicago Bridge & Iron Co. (NYSE: CBI) may be the top pick for investors looking to benefit from the resurgence in North American infrastructure expansion.

According to Jim Cramer, Chicago Bridge & Iron is a solid play on the expansion. Recently, the company topped Q4 EPS views by 8 cents, while revs rose 22 percent in the period.

Aiding Chicago Bridge & Iron is the recent acquisition of Shaw Group, which bolstered the company’s backlog to $28 billion.

Cramer said that Chicago Bridge & Iron trading at 14 times earnings with a growth rate of 23 percent doesn’t justify its stock price. He thinks that investors would do well to take a look at the stock into the company’s upcoming analyst day, currently scheduled for March 28th.

Chicago Bridge & Iron also appears to be taking business from Foster Wheeler (Nasdaq: FWLT). Despite being a smaller company overall and missing quarterly results, Cramer said that Foster is taking on lower-margin business as its still levered to a struggling European market.

Shares of Chicago Bridge & Iron are up 1.3 percent Friday.

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