10 Best Construction Stocks to Buy Now

7. United States Lime & Minerals, Inc. (NASDAQ:USLM)

Number of Hedge Fund Holders: 23

United States Lime & Minerals, Inc. (NASDAQ:USLM) plays a key role in the construction industry as it produces lime and limestone products that are used in various construction processes. Its revenues in Q4 2024 on the YoY basis were aided by higher average selling prices for its lime and limestone products and elevated sales volumes, mainly to its construction, environmental, and industrial customers. United States Lime & Minerals, Inc. (NASDAQ:USLM)’s revenues in Q4 2024 came in at $80.1 million as compared to $65.7 million in Q4 2023, an increase of 21.9%. Lime and limestone revenues were $79.8 million in Q4 2024 as compared to $65.4 million in Q4 2023, reflecting 22.0% growth.

In FY 2024, United States Lime & Minerals, Inc. (NASDAQ:USLM) saw higher revenues due to an increase in average selling prices for its lime and limestone products, partially offset by a decline in sales volumes resulting mainly from lower demand from its construction customers, offset in part by higher demand from its industrial, environmental, and roof shingle customers. Overall, the growth in the construction sector is expected to fuel demand for United States Lime & Minerals, Inc. (NASDAQ:USLM)’s products as lime is critical in the production of cement, concrete manufacturing, and soil stabilization of infrastructure projects.

Diamond Hill Capital, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“On an individual holdings’ basis, among our top Q4 contributors were Allegiant Travel and United States Lime & Minerals, Inc. (NASDAQ:USLM). United States Lime & Minerals (USLM) manufactures and supplies lime and limestone products to various construction and industrial customers. During Q4, USLM benefited from a particularly beneficial confluence of factors: Higher average selling prices for lime and limestone products as well as increased sales volumes to construction and roof shingle customers have helped drive robust revenue growth. Further, USLM effectively managed its relatively fixed cost base, allowing increased prices to flow directly to higher margins and resulting in record margins in Q4. The company also benefited from lower natural gas prices and favorable direct labor, raw materials, energy, transportation and plant operating cost conditions — all of which supported profitability. Finally, USLM’s strategic position in Texas’s growing I-35 corridor as well as strong pricing power in key markets and effective variable cost management contributed to margin expansion in Q4.”