4. Martin Marietta Materials, Inc. (NYSE:MLM)
Market Capitalization: $28.65 Billion
1-Year Performance: -18.10%
Number of Hedge Fund Holders: 54
Analyst Upside Potential: 32.47%
Martin Marietta Materials, Inc. (NYSE:MLM) provides materials used in construction and infrastructure projects. It supplies aggregates like crushed stone, sand, and gravel. These are essential for building roads, sidewalks, and foundations. It also produces cement, ready-mixed concrete, and asphalt, which are used in construction projects.
On February 13, Raymond James lowered the firm’s price target on the stock from $630 to $600, while maintaining its Outperform rating. The firm noted that the company faces uncertainty in residential and light non-residential construction markets, which could impact its sales volumes. However, regardless of the challenges the firm sees strong momentum in heavy non-residential construction and public infrastructure projects.
During Q4 2024, Martin Marietta Materials, Inc. (NYSE:MLM) achieved record aggregate financial performance despite challenges from adverse weather, tighter monetary policies, and a slowdown in private construction. Its gross profit reached $489 million, whereas aggregates gross profit per ton rose by 12% to $7.92. It is one of the worst-performing large-cap stocks to buy according to analysts.
Alger Spectra Fund stated the following regarding Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2024 investor letter:
“Martin Marietta Materials, Inc. (NYSE:MLM), a leading supplier of building materials such as aggregates, cement, ready-mixed concrete, and asphalt, serves the construction and infrastructure industries across the U.S., Canada, and the Bahamas. During the quarter, the company reported mixed fiscal first quarter operating results, where revenues came in slightly below analyst estimates. While the company noted that lower-than-expected shipments in aggregates was due largely to weather, a 13% increase in aggregate pricing starting in January 2024 helped offset this weakness. Moreover, management provided lower than expected 2024 aggregates volume guidance as they shift their focus on higher priced projects. Given the disappointment in projected aggregate volumes, shares detracted from performance during the quarter.”
