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When another COVID-19 stimulus bill is eventually passed, Democrats in Congress are expected to turn their attention toward healthcare or infrastructure.

Morgan Stanley's Chief Public Policy Strategist Michael Zezas believes the chances are higher that infrastructure will take priority, as it would aid the economic recovery. A $1 trillion package would add an estimated 715,000 jobs over a 10-year period, Morgan Stanley economists found.

Plus, infrastructure investment has also been down in recent years, heightening need in the area.

Biden has proposed an infrastructure deal worth around $2 trillion. But Zezas' bull case scenario is that a smaller $1.5 trillion deal passes. It would resemble the Moving Forward Act which the House of Representatives passed in 2020, though the Senate held no vote on it, he said. 

He expects lawmakers to pass such a bill in the third or fourth quarter this year using the reconciliation method, which requires a simple majority 51 votes in the Senate to pass. 

The deal would likely send demand for materials like cement and stone soaring, boosting profits and share prices.

"An infrastructure package could catapult building materials into a Super Cycle similar to the 1950s," a February 23 note from the firm said. "We are 10 years into the current construction cycle, exiting a recession, and potentially facing a government-underwritten cycle of another 10 years."

This in mind, investors looking to get ahead of gains in infrastructure-related stocks should start strategizing now. 

A team of Morgan Stanley analysts screened for stocks under their coverage that would most benefit from an infrastructure deal, and found 14 cement, aggregates, and steel firms with substantial upside in such a scenario.

The stocks are listed below in ascending order of their upside potential in Morgan Stanley's bull case scenario. The gap between the stocks' current levels and their price targets without considering an infrastructure bill are also included.

Ticker: NUE

Upside to price target: 3%

Upside to bull case: 31%

Source: Morgan Stanley

Ticker: VMC

Upside to price target: -2%

Upside to bull case: 36%

Source: Morgan Stanley

Ticker: MLM

Upside to price target: 6%

Upside to bull case: 39%

Source: Morgan Stanley

Ticker: ELLMF

Upside to price target: 28%

Upside to bull case: 42%

Source: Morgan Stanley

Ticker: STLD

Upside to price target: 8%

Upside to bull case: 47%

Source: Morgan Stanley

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SEE ALSO: Chris Armbruster co-manages a growth fund that's outperformed 96% of its peers over the last 5 years. He details 2 disruptive software stock picks with 'mission critical' importance to their clients, including the major banks adopting them.