10 Best Construction Materials Stocks To Buy Now

7. Commercial Metals Company (NYSE:CMC)

Number of Hedge Fund Holders: 19

Commercial Metals Company (NYSE:CMC) provides products and technologies to cater to the critical reinforcement needs of the global construction sector. The firm maintains facilities across the United States, Europe, and Asia. Although CMC’s products are renowned, its vertically integrated business model puts it on the map. The company was the first steel manufacturer to introduce vertical integration in the US. CMC combined the recycling and processing of scrap metals with the blending of processed scrap into new steel and the fabrication of finished steel products which made it revolutionize the steel industry.

CMC is an industry leader. The firm is a key supplier to construction projects across two continents by being among the largest manufacturers of steel reinforcing bars in North America and Central Europe. CMC is also a leader in the steel long products market as it produces merchant bars, steel fence posts, and wire rods.

Commercial Metals Company (NYSE:CMC) closed fiscal 2024 as a solid year. Highlights include the third-best financial results in the firm’s 109-year history and record employee safety performance for the second consecutive year. The fourth quarter results were impacted by macroeconomic and political uncertainty, especially regarding the US interest rates and the outcomes of the election. However, underlying demand fundamentals remain robust due to structural trends of infrastructure investment, electrification, re-shoring of manufacturing, and the need to cater to the housing shortage in the country.

Therefore, Commercial Metals Company (NYSE:CMC) has leading positions in core products and geographies and a vertical structure that optimizes returns through the value chain. As of Q3, the stock is held by 19 hedge funds and ranks among the best construction materials stocks to buy now.