- The Trump administration is rumored to be working on a $1 trillion infrastructure spending measure.
- CNBC's Jim Cramer says an infrastructure bill would be a big deal for construction companies like Martin Marietta Materials and Vulcan Materials.
- The "Mad Money" host also likes Nucor as a play on the potential measure, but shunned U.S. Concrete and Caterpillar's rises on the news.
Road building companies will be some of the biggest beneficiaries of a potential expansive infrastructure bill that the Trump administration is reportedly mulling, CNBC's Jim Cramer said Tuesday.
Bloomberg reported earlier in the day that the Department of Transportation is patching together a $1 trillion spending measure for projects like roadwork and bridges, along with 5G wireless and broadband expansion.
"Both of these companies are very very strong and they've always done well even when they only have" a few orders "from state governments," the "Mad Money" host said. "I cannot imagine how profitable they'd be with a trillion-dollar infrastructure package from the federal government."
Martin Marietta, a Raleigh, North Carolina company with operations in dozens of states, is Cramer's favored choice of the two. The company is valued by the market at $13.3 billion.
The stock price surged north of 7% during the trading day, closing at $214.13, which is down 23% from the start of the year.
"They blanket the South" and "have the ability to go North and East and even Far West although their exposure there is weaker," Cramer said. "I like Martin Marietta because even if we don't get an infrastructure bill you'll do very well just from the great state projects that they do and because of the homebuilding related business."
Vulcan Materials has a market cap of $16.3 billion. The stock also spiked almost 9% on the day and is down 14% year to date.
Cramer isn't completely sold, however, that Congress will put the legislation on President Donald Trump's desk this year. CNBC White House reporter Eamon Javers also threw cold water on the likelihood of the plan seeing the light of day amid the 2020 election cycle.
U.S. Concrete rocketed 22% higher to a $28.33 close.
"Honestly, I don't' trust this one. U.S. Concrete has been a serial disappointed," Cramer said. "If you bought it every time we had a whiff of the possibility of an infrastructure bill you would've lost a fortune."
Caterpillar rose 5% to $130.11 at the close.
"Today's six-point rally comes at a time when Cat's larger business, oil and gas, is still in a house of pain," the host said.
Nucor rallied 6% to $44.59 on the news.
"I like Nucor because it's a buy no matter what, and even with the stock up more than 6% today it's still down roughly 20% for the year," Cramer said.