10 Best Construction Materials Stocks To Buy Now

3. Martin Marietta Materials, Inc. (NYSE:MLM)

Number of Hedge Fund Holders: 44

Martin Marietta Materials, Inc. (NYSE:MLM) is a leading supplier of building materials such as aggregates, cement, ready-mixed concrete, and asphalt. The firm has a network of operations across 28 US states, Canada, and the Bahamas. Martin Marietta Materials also has a Magnesia Specialties business which produces high-purity magnesia and dolomitic lime products used in industrial, agricultural, environmental, and specialty applications worldwide.

Martin Marietta Materials, Inc. (NYSE:MLM) has an aggregates-led business that has been resilient against macroeconomic conditions. The firm benefits from a strategically positioned footprint in the country’s fastest-growing markets. It has a diversified end market exposure which lowers the cyclical demand volatility. The financials have also been strong with total revenues, adjusted EBITDA, and diluted earnings per share rising from 2010 to 2023.

The firm was successful in achieving record quarterly aggregates gross profit per ton in the third quarter despite weather-related events impacting the financial results, product shipments, and geographic mix. Regardless, the firm witnessed record third-quarter cash flows from operations and record third-quarter revenues and gross profit in its Magnesia Specialties business. MLM continues penetrating attractive growing markets as it acquired pure aggregates assets in South Florida and Southern California in October.

Martin Marietta Materials, Inc. (NYSE:MLM) looks forward to benefiting from record levels of federal and state investments in highways, streets, and bridges in 2025 and beyond. The conditions are turning out to be more positive with the Fed rate cuts which are expected to drive a recovery in housing and light nonresidential construction activity. Thus, the company is set to reap the benefits of its resilient aggregates-led business model in the positively forecasted future. As of Q3, the stock is held by 44 hedge funds