10 Best Construction Materials Stocks To Buy Now

4. Knife River Corporation (NYSE:KNF)

Number of Hedge Fund Holders: 33

Knife River Corporation (NYSE:KNF) is an aggregates-based construction materials and services company. The company provides construction materials and contracting services in the western, central, and southern United States. It is vertically integrated with operations spanning 14 states.

Aggregates are the foundation of KNF’s business. The firm serves as one of the nation’s largest construction materials and contracting businesses which has 188 aggregate sites totaling over 1 billion tons of reserves. Other than being a leading supplier of construction materials, KNF performs construction in 12 of its 14 states, through a business mix heavily weighted to public-sector projects. Thus, this combination of products and services has been beneficial for the company over the years.

Third-quarter results remained promising for Knife River Corporation (NYSE:KNF) as it posted record third-quarter revenue, gross profit, and net income. The firm also expects to generate an attractive financial return through acquisitions. KNF has deployed $129.3 million of capital on six acquisitions, with a focus on aggregate reserves and construction materials, through November 2. To drive long-term profitable growth, the company is pursuing the EDGE strategy which refers to EBITDA margin improvement, discipline, growth, and excellence. The strategy remains intact with ongoing growth, pricing optimization, and cost control. With record or near-record budgets at most of its state departments of transportation, KNF is also finding opportunities to bid on projects across its footprint.

Thus, Knife River Corporation (NYSE:KNF) is an aggregates-led, vertically integrated construction materials and contracting services company that is currently favoring a competitive EDGE strategy as well as a strong public funding backdrop.