11 Best Cement and Construction Materials Stocks to Buy Now

3. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 40

Vulcan Materials Company (NYSE:VMC) is a major producer of aggregates-based construction materials including asphalt and ready-mixed concrete. Vulcan has an old history as it became a publicly traded company with trading starting in 1957. The company is headquartered in Birmingham, Alabama.

Vulcan is the leading supplier of aggregates which are essential to infrastructure, growth, and construction. The firm has an unmatched coast-to-coast footprint that spans the high-growth US markets. The firm has shown resilience despite the external market conditions. Vulcan’s focus on aggregates presents it with favorable fundamentals in the form of a diverse end-market demand with aggregates used in all kinds of construction, limited product substitutions, attractive pricing characteristics, and high barriers to entry. The demographics also help drive growth as Vulcan serves states that are advantaged for better growth in population, employment, and household.

Vulcan Materials Company (NYSE:VMC) closed the fiscal second quarter with record earnings growth and margin expansion. The aggregates cash gross profit per ton increased 12% year-over-year while the gross profit margin expanded 120 basis points, year-over-year. Thus, the firm’s aggregates-led business remained durable and performed despite the rainfall impacting construction activity during the quarter.

The prospects for growth remain favorable with a uniquely positioned aggregates business, proven expertise, a compelling footprint, and favorable market dynamics. During the last 10 years, Vulcan Materials Company (NYSE:VMC) has completed almost 40 acquisitions across its top 10 revenue states and is poised for expansion.