We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where Martin Marietta Materials, Inc. (NYSE:MLM) stands against other worst performing large cap stocks to buy according to analysts.
How Did The Market Perform in Q4 2024?
On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.
READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.
On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.
As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.
Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.
Our Methodology
To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A large construction project with cranes and forklifts in action, demonstrating the company’s building materials business.
Martin Marietta Materials, Inc. (NYSE:MLM)
Market Capitalization: $28.65 Billion
1-Year Performance: -18.10%
Number of Hedge Fund Holders: 54
Analyst Upside Potential: 32.47%
Martin Marietta Materials, Inc. (NYSE:MLM) provides materials used in construction and infrastructure projects. It supplies aggregates like crushed stone, sand, and gravel. These are essential for building roads, sidewalks, and foundations. It also produces cement, ready-mixed concrete, and asphalt, which are used in construction projects.
On February 13, Raymond James lowered the firm’s price target on the stock from $630 to $600, while maintaining its Outperform rating. The firm noted that the company faces uncertainty in residential and light non-residential construction markets, which could impact its sales volumes. However, regardless of the challenges the firm sees strong momentum in heavy non-residential construction and public infrastructure projects.
During Q4 2024, Martin Marietta Materials, Inc. (NYSE:MLM) achieved record aggregate financial performance despite challenges from adverse weather, tighter monetary policies, and a slowdown in private construction. Its gross profit reached $489 million, whereas aggregates gross profit per ton rose by 12% to $7.92. It is one of the worst-performing large-cap stocks to buy according to analysts.
Alger Spectra Fund stated the following regarding Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2024 investor letter:
“Martin Marietta Materials, Inc. (NYSE:MLM), a leading supplier of building materials such as aggregates, cement, ready-mixed concrete, and asphalt, serves the construction and infrastructure industries across the U.S., Canada, and the Bahamas. During the quarter, the company reported mixed fiscal first quarter operating results, where revenues came in slightly below analyst estimates. While the company noted that lower-than-expected shipments in aggregates was due largely to weather, a 13% increase in aggregate pricing starting in January 2024 helped offset this weakness. Moreover, management provided lower than expected 2024 aggregates volume guidance as they shift their focus on higher priced projects. Given the disappointment in projected aggregate volumes, shares detracted from performance during the quarter.”
Overall, MLM ranks 4th on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of MLM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MLM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.