Firms are "flush with cash" and spending is at its highest in history, according to investment firm Jefferies, which recommended dozens of U.S. and global stocks to play the trend.
Jefferies' capital expenditure — or capex — indicator is "going ballistic," the bank said in a research note Monday, and there has been a surge in corporate spending on big-ticket goods such as ships, as well as on smaller items like plant equipment.
Investment bank JPMorgan also picked stocks set to get a boost from the capital expenditure "bright spot." It created two new lists of stocks likely to benefit from President Joe Biden's $2.3 trillion infrastructure plan, as well as the E.U.'s 750 billion euro ($912 billion) recovery fund.
The banks' stock picks include: