10 Best Construction Materials Stocks To Buy Now

2. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 49

Vulcan Materials Company (NYSE:VMC) is a major producer of aggregates-based construction materials. The company has a history with over 100 years of dedication as it became a publicly traded company with trading starting on January 2, 1957. The company is headquartered in Birmingham, Alabama.

Vulcan is the leading supplier of aggregates which are essential to infrastructure, growth, and construction. The firm is one of the nation’s largest producers of construction aggregates and a major producer of aggregates-based construction materials including asphalt and ready-mixed concrete. Vulcan’s coast-to-coast footprint is unmatched and spans the high-growth US markets.

Vulcan’s focus on aggregates presents it with favorable conditions in the form of a diverse end market demand with aggregates utilized in all kinds of construction, attractive pricing characteristics, limited product substitutions, and high barriers to entry. The demographics are an additional pro as the company serves states that are advantaged for better growth in population, employment, and household.

The firm’s industry-leading aggregates cash gross profit per ton increased 10% in the third quarter, despite lower shipments and harsh weather conditions, and has grown by double-digits for 8 consecutive quarters. Although bad weather impacted construction activity in the first 9 months of the year, overall demand fundamentals are strong, due to growth in public construction activity and an improving private demand environment.

Vulcan Materials Company (NYSE:VMC) has a uniquely positioned aggregates business and an impressive footprint, while market dynamics are positive. With what the firm produces being used in nearly all forms of construction, Vulcan has bright growth prospects to pursue. As of Q3, the stock is held by 49 hedge funds.