From Morningstar: 2024-04-09 09:56:00

Shares in Stella-Jones have surged 69%, outperforming tech stocks in 2023. The company manufactures railway ties and poles, with North America driving 47% of sales. The pole replacement cycle has accelerated, with increased demand for utility poles due to the rise of electric vehicles. Stella-Jones remains a dominant player in the industry.

Increasing demand for utility poles is evident in North America. Utility companies are investing heavily in infrastructure to support the electric vehicle transition. Stella-Jones stands out as a key player in the replacement cycle of utility poles. The company’s stock price has room to grow, with projections of reaching C$102 in 2025.

As the need for utility poles grows, Stella-Jones remains a strong investment choice. The company is well-positioned to benefit from increased infrastructure spending to support electric vehicles. With a projected target price of C$102 by 2025, Stella-Jones shows promise for investors looking to capitalize on the expanding utility pole market.



Read more at Morningstar: Don’t Chuck Wood: Why Pole Stocks Are The Next EV Play