10 Best Materials Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Investors  in Q1 2024: 52

Martin Marietta Materials, Inc. (NYSE:MLM) is a specialized basic materials company that provides raw materials such as aggregates and crushed stones to the construction industry. While this leaves it vulnerable to the pitfalls of the construction industry – such as the ones from high interest rates – Martin Marietta Materials, Inc. (NYSE:MLM)’s stock is up by 17% over the past year. These gains have come on the back of strong management execution. Dubbed as ‘value over volume’, Martin Marietta Materials, Inc. (NYSE:MLM) has managed to successfully raise prices over the past few quarters to ensure that its revenue continues to grow even as a construction slowdown hampers its shipment volumes. At the same time, the firm has kept its focus on volume too by acquiring multiple new aggregate mines as well as companies to increase its operational footprint.

Fund Carillon Tower Advisers was appreciative of all these factors for Martin Marietta Materials, Inc. (NYSE:MLM) in its Q1 2024 investor letter where it shared:

Martin Marietta Materials is a building materials company that supplies primarily aggregates, as well as cement and downstream products, to infrastructure and construction-related end markets. The stock was a notable performer in the quarter, as it enjoyed a period of extraordinary pricing gains while simultaneously seeing internal cost inflation moderate from previously elevated levels. Accelerating levels of infrastructure spending and a continuation of improving trends in residential construction activity are providing a runway for a potential inflection in volume growth as well. Additionally, the company’s healthy balance sheet, coupled with the current robust mergers and acquisition (M&A) backdrop within its core aggregates offerings, could provide an additional tailwind for growth.