11 Best Cement and Construction Materials Stocks to Buy Now

4. Knife River Corporation (NYSE:KNF)

Number of Hedge Fund Holders: 37

Knife River Corporation (NYSE:KNF) is an aggregates-based construction materials and services company. The company supplies aggregates, ready-mix concrete, asphalt, and contracting services in the United States. It is vertically integrated with operations spanning 14 states.

The company has the privilege of being one of the nation’s largest construction materials and contracting businesses which has 188 aggregate sites totaling over 1 billion tons of reserves. It is among the largest producers of sand and gravel in the US. KNF’s growth history is strong with over 85 acquisitions in the past thereby being the acquirer of choice in its midsized high-growth markets. To drive long-term profitable growth, the company is pursuing the EDGE strategy which refers to EBITDA margin improvement, discipline, growth, and excellence.

The second quarter remained promising for the firm with a good start to the construction season. Knife River Corporation (NYSE:KNF) saw a record second-quarter revenue of $806.9 million, net income of $77.9 million, and adjusted EBITDA of $154.3 million. Adjusted EBITDA margin also grew by 240 basis points, on a trailing twelve-month basis through June 30. The firm is also considering potential acquisitions across its segments which are focused on materials-based businesses.

Market conditions are an additional pro with lawmakers in eight of Knife River’s fourteen states introducing additional legislation to fund construction projects. The company also hopes to benefit from the Infrastructure Investment and Jobs Act, with 56% of its funding still to be obligated in KNF’s market areas.

Knife River Corporation (NYSE:KNF) is a leading construction materials company with a beneficial combination of products and services amidst favorable market conditions and future growth opportunities. The company ranks among the best cement and construction materials stocks to buy now.