10 Stocks Jim Cramer Can’t Stop Talking About

6. Martin Marietta Materials Inc. (NYSE:MLM)

Number of Hedge Fund Investors: 45

Jim Cramer suggests that Martin Marietta Materials Inc. (NYSE:MLM) is a solid investment because it focuses on essential building materials for new housing developments. However, Cramer notes that the real gains for Martin Marietta Materials Inc. (NYSE:MLM) will come later after homebuilders fully commit to new construction projects. This means Martin Marietta Materials Inc. (NYSE:MLM)’s performance might improve significantly once the construction of new homes picks up speed.

“The more tangible plays are going to be Martin Marietta Materials, which represent the basics of building out new housing developments. But those really start winning later on, once the homebuilders fully embrace new construction.”

Martin Marietta Materials Inc. (NYSE:MLM) is an appealing investment because of its leading role in the construction materials industry, its ability to benefit from infrastructure investments, and its strong financial performance. As a major supplier of aggregates, cement, and ready-mixed concrete, Martin Marietta Materials Inc. (NYSE:MLM) is well-positioned to take advantage of the ongoing demand for infrastructure development across the United States.

In Q2 2024, Martin Marietta Materials Inc. (NYSE:MLM) reported a 10% increase in revenues year-over-year, reaching $1.82 billion. This growth was driven by strong demand in both public and private construction sectors, bolstered by federal and state infrastructure funding, price increases, and effective cost management. Martin Marietta Materials Inc. (NYSE:MLM) is also expanding its operations through strategic acquisitions, which enhance its geographic reach and production capacity.

With a strong balance sheet and a disciplined approach to capital allocation, Martin Marietta Materials Inc. (NYSE:MLM) is well-equipped to pursue growth opportunities and return value to shareholders through dividends and share repurchases. Given the U.S. government’s ongoing investment in infrastructure, including the Infrastructure Investment and Jobs Act, Martin Marietta Materials Inc. (NYSE:MLM) stands to benefit significantly from increased spending on transportation and public works, reinforcing its potential as a worthwhile investment.