11 Best Materials Stocks to Buy According to Hedge Funds

1. CRH plc (NYSE:CRH)

Number of Hedge Fund Holders: 90

CRH plc (NYSE:CRH) has redefined itself as a one-stop shop for construction customers by combining upstream and downstream operations. As the biggest roadbuilder in North America, the firm stands to gain from newly passed U.S. legislation that increases financing for highway and road construction by 50%. Strong profitability indicators are a result of a healthy price environment for building materials, which is supported by funding certainty for US infrastructure projects, reshoring activity, and high entry barriers for upstream building supplies. The stock climbed by more than 9% over the past year, making it the best materials stock.

CRH plc (NYSE:CRH) reported $8.9 billion in revenue and $0.7 billion in net income for the fourth quarter of 2024. These figures rose by 2% and 24% year over year, respectively. A favorable price mix, operational efficiency, and acquisitions helped to boost adjusted EBITDA by 12% to $1.8 billion. EPS also rose 4% to $1.03. The business acquired 40 companies for $5 billion in 2024, including a $2.1 billion cement and concrete deal in Texas. Furthermore, it sold assets worth $1.4 billion, mostly Lime operations in Europe.

CRH plc (NYSE:CRH) was given a Buy rating by Truist Securities, with a price objective of $120. Keith Hughes, an analyst, believes that the European construction market has a lot of potential, particularly given Germany’s stimulus expenditure and Ukraine’s projected reconstruction efforts. Since Europe accounts for 28% of its income, the firm’s US investors have exclusive access to the expansion of the region.

Overall, CRH ranks first among the 11 Best Materials Stocks to Buy According to Hedge Funds. While we acknowledge the potential of material companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CRH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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