1. CRH (NYSE:CRH)
Number of Hedge Fund Investors: 75
Forward P/E Ratio as of September 26: 11.93
CRH (NYSE:CRH) is an international company based in Ireland that manufactures and supplies a wide range of building materials. The company’s diversified business model, strategic acquisitions, and favorable market trends position it for continued success in the construction materials industry. CRH (NYSE:CRH) operates in 31 countries and has a strong presence in the Americas and Europe. The company is a leader in sustainable construction solutions and has committed to significantly reducing its carbon emissions by 2030.
On July 1, 2024, CRH (NYSE:CRH) completed its acquisition of a 57% stake in Adbri, an Australian manufacturer of cement, lime, and dry blended products. By doing so, CRH (NYSE:CRH) has positioned itself to fully integrate Adbri’s operations, unlocking potential cost synergies and paving the way for improved operational efficiency. Moreover, CRH (NYSE:CRH) is expected to strengthen its market position and generate cost savings, with estimated cost savings of $60 million by the third year.
The Infrastructure Investment and Jobs Act (IIJA), with a total allocation of $1.2 trillion, is poised to significantly enhance the infrastructure sector, particularly benefiting companies such as CRH (NYSE:CRH). A notable portion of this funding, approximately $110 billion, is earmarked for critical areas such as roads and bridges, as well as essential utility infrastructure, which includes water, energy, and technology systems.
CRH’s (NYSE:CRH) strong historical financial performance, strategic acquisitions, and favorable market trends position the company for continued growth and success in the construction materials industry. CRH’s (NYSE:CRH) stock is trading at a forward P/E ratio of 16.71. Analysts expect the company to increase its earnings by 24.16% this year and have given the stock a Buy rating with an average price target of $102.58, which implies an upside of 11.43% from current levels. As of the second quarter, the stock is held by 75 hedge funds with stakes worth $6.3 billion. Select Equity Group is the largest stakeholder in the company and has a position worth $1.09 billion as of June 30.
While we acknowledge the potential of CRH (NYSE:CRH) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 the cheapest AI stock.
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