11 Best Cement and Construction Materials Stocks to Buy Now

7. Commercial Metals Company (NYSE:CMC)

Number of Hedge Fund Holders: 24

Commercial Metals Company (NYSE:CMC) is an innovative solutions provider that provides products and technologies to cater to the critical reinforcement needs of the global construction sector. The firm was the first steel manufacturer to introduce vertical integration in the United States. CMC combined the recycling and processing of scrap metals with the blending of processed scrap into new steel and the fabrication of finished steel products which transformed the steel industry.

CMC is an innovative leader in the industry by opening the first continuous process micro mill and being the first in the US to introduce spooled rebar. The firm is a key supplier to construction projects across two continents by being among the largest manufacturers of steel reinforcing bars in North America and Central Europe. CMC is also a leader in the steel long products market as it produces merchant bar, steel fence post, and wire rod.

The firm closed the fiscal third quarter with core EBITDA margin, core EBITDA, net earnings, and cash flows at levels above long-term averages. The aforementioned metrics also improved as a result of the strong operational performance across CMC’s footprint and a healthy beginning to the 2024 construction season.

CMC is preparing itself to benefit from the favorable long-term structural trends in construction activity by several projects. The firm is ramping up its state-of-the-art Arizona 2 plant, the first micro mill across the globe capable of producing both rebar and merchant bar quality (MBQ) product. CMC is also completing foundations at the site of its fourth micro mill in West Virginia.

CMC has leading positions in core products and geographies and a vertical structure that optimizes returns through the value chain. In conclusion, Commercial Metals Company (NYSE:CMC) is set to deliver industry-leading returns and is stronger than ever to capitalize on the strength in infrastructure, non-residential construction, and OEM.