3. CRH plc (NYSE:CRH)
Total Number of Shares Owned: 4,226,602
Total Value of Shares Owned: $316,911,000
Number of Hedge Fund Investors: 75
In its recent Q2 2024 earnings report, CRH plc (NYSE:CRH) reported impressive revenue growth, primarily driven by robust demand for its building materials in various markets. This success highlights CRH plc (NYSE:CRH)’s ability to take advantage of ongoing infrastructure projects and residential construction.
A key point from the earnings report is CRH plc (NYSE:CRH)’s commitment to expanding its product offerings and improving operational efficiency. CRH plc (NYSE:CRH) has been investing in sustainable materials and technologies, aligning with the increasing demand for environmentally friendly construction solutions. This focus not only enhances CRH plc (NYSE:CRH)’s competitive edge but also meets customer preferences for sustainable options.
Moreover, CRH plc (NYSE:CRH)’s strategic acquisitions have significantly strengthened its market position. CRH plc (NYSE:CRH) has been pursuing targeted acquisitions to expand its portfolio and geographical reach. Recent news about the successful integration of these acquisitions shows CRH plc (NYSE:CRH)’s ability to leverage new assets to drive growth and enhance profit margins.
The global emphasis on infrastructure investment further supports a positive outlook for CRH plc (NYSE:CRH). With governments around the world increasing spending on infrastructure projects, CRH plc (NYSE:CRH) is well-positioned to benefit. Its diverse range of products and services allows the company to capture opportunities across commercial, residential, and public sectors.
L1 Capital International Fund stated the following regarding CRH plc (NYSE:CRH) in its Q2 2024 investor letter:
“Three companies detracted from the Fund’s performance by more than 0.5% – CRH plc (NYSE:CRH), Eagle Materials and Mastercard.
In our view, measuring the performance of investments over short time horizons such as three months is meaningless. While CRH and Eagle Materials detracted from the Fund’s returns this quarter, they were both leading positive contributors in the prior quarter. Since Inception of the Fund over 5 years ago, both companies have been top ten contributors to the Fund’s returns.
Recently, there has been some negative data that is causing a sell-off in the share price of CRH and Eagle Materials. Both these companies supply building products to the infrastructure, residential and commercial construction sectors. CRH has around 75% exposure to North America, with the remainder principally Europe (CRH has also recently acquired the majority of Adbri in Australia). Eagle Materials solely operates in the U.S.
Demand from the U.S. infrastructure sector is likely to remain robust for the medium term due to increased Federal and State spending, supported by the $1.2 trillion Infrastructure Investment and Jobs Act. Short term activity has been disrupted by bad weather – we think this is complete noise and is just slightly delaying projects, although CRH and Eagle Materials’ June 2024 quarterly results will likely be impacted…” (Click here to read the full text)
