11 Best Cement and Construction Materials Stocks to Buy Now

6. Summit Materials, Inc. (NYSE:SUM)

Number of Hedge Fund Holders: 24

Summit Materials, Inc. (NYSE:SUM) is a vertically integrated aggregates-based business. The company supplies cement, aggregates, ready-mix concrete, and asphalt paving mix in the United States and western Canada.

The firm serves well-diversified customers in advantaged markets with a materials-led portfolio. With aggregates being an essential input for heavyside construction and cement being the most widely used building material globally, the firm benefits from industry characteristics including limited substitutes, barriers to entry, and favorable supplier conditions. Summit also occupies a market leadership position by being one of the largest US cement producers and biggest US aggregates producers.

Despite disruptions related to weather, Summit Materials, Inc. (NYSE:SUM) delivered a strong fiscal second quarter. Net revenue increased 58.1% year-over-year to $1,075.5 million. Results by lines of business were robust. Aggregates net revenue rose 2.5%, cement segment net revenues rose 200.3%, and products net revenues rose 60%, year-over-year. The resilient performance was facilitated by cost-saving initiatives, all lines of business experiencing organic pricing growth, and a durable portfolio.

With attractive industry dynamics for materials lines of business, an industry-dominant position, and a growth-oriented portfolio, Summit Materials, Inc. (NYSE:SUM) is a promising cement and construction materials stock.