10 Best Construction Materials Stocks To Buy Now

5. Eagle Materials Inc. (NYSE:EXP)

Number of Hedge Fund Holders: 31

Eagle Materials Inc. (NYSE:EXP) is a manufacturer of basic construction materials utilized in residential, commercial, industrial, infrastructure, and energy applications. It has two primary products, Portland Cement and Gypsum Wallboard, which are used for building and repairing roads and highways as well as for building and renovating commercial, residential, and industrial structures. The company manufactures and sells its products through a network of facilities spanning 21 states across the US.

The firm owns virtually all of its raw materials and has relative self-sufficiency with decades of supply located close to its production facilities. With cement being the essential binding material in concrete with few substitutes and the water molecule imbedded in gypsum wallboard chemistry with an inherent fire resistance benefit essential to satisfy US construction specifications, the conditions remain favorable for Eagle Materials Inc. (NYSE:EXP).

For the second quarter of fiscal 2025 ended September 30, Eagle Materials Inc. (NYSE:EXP) witnessed record revenue of $623.6 million although weather conditions were adverse. Revenue in the Light Materials sector which includes Gypsum Wallboard and Paperboard, increased 5% to $244.1 million, due to higher Wallboard and Paperboard sales volume and sales prices. On the other hand, revenue in the Heavy Materials sector which includes Cement, Concrete and Aggregates, Joint Venture, and intersegment Cement revenue, was $418.7 million, a 2% decline, as a result of lower sales volume. The decline was partially offset by higher sales prices and the effects of an Aggregates acquisition during the quarter.

Other than favorable underlying fundamentals, Eagle Materials Inc. (NYSE:EXP) can potentially advantage of the positive economic environment with strong employment, an extreme housing shortage, and spending from the Infrastructure Investment and Jobs Act (IIJA) still in the beginning phases. As of Q3, the stock is held by 31 hedge funds and ranks among the best construction materials stocks to buy now.