Vulcan Materials Company (VMC): A Bull Case Theory

We came across a bullish thesis on Vulcan Materials Company (VMC) on Substack by LongTermValue Research. In this article, we will summarize the bulls’ thesis on VMC. Vulcan Materials Company (VMC)’s share was trading at $240.10 as of April 2^nd. VMC’s trailing and forward P/E were 34.75 and 28.74 respectively according to Yahoo Finance.

A construction site featuring a large concrete foundation poured by the cement manufacturing company.

Vulcan Materials (VMC) is a dominant player in the construction materials industry, specializing in aggregates such as asphalt, ready-mix concrete, and crushed stone used in critical infrastructure projects like roads, bridges, tunnels, and airports. With an enterprise value of $34.8 billion and a market cap of $30 billion, Vulcan operates local monopolies across 23 states, with nearly half of its revenue coming from the Gulf Coast market. The company is positioned as a key beneficiary of federal infrastructure spending through initiatives like the “Build America” programs, which support sustained demand for construction materials. Despite recent market volatility and a 19% decline from its 30-day high, Vulcan remains an earnings compounder with robust pricing power, reflected in its projected 17% EPS growth for 2026. Trading at 26.8x and 22.8x forward P/E for 2025 and 2026, respectively, it offers an attractive PEG ratio of 1.3x. While the stock’s pullback makes it interesting at current levels, further downside could present an even better entry point for long-term investors. Given its monopoly-like positioning, ability to pass through cost increases, and strong secular tailwinds, Vulcan remains a high-quality name to watch in an uncertain market environment.

Vulcan Materials Company (VMC) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held VMC at the end of the fourth quarter which was 49 in the previous quarter. While we acknowledge the risk and potential of VMC as an investment, our conviction lies in the belief that some 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 VMC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.