Vulcan Materials Company (VMC), headquartered in Birmingham, Alabama, with a market cap of $36.4 billion, is a leading construction aggregate and materials producer. Known for its innovation and commitment to quality, Vulcan offers various products, including crushed stone, sand, and gravel, serving the needs of infrastructure projects, commercial developments, and residential construction across the U.S.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” a category Vulcan Materials exemplifies through its strong market presence and leadership in the construction materials industry. Vulcan’s commitment to quality, sustainability, and innovation underscores its position as a key player in supporting infrastructure development and meeting the evolving needs of the construction sector.
Shares of the building material company are currently trading 7.6% below their 52-week high of $298.31, hit on Nov. 6. Over the past three months, the stock has gained 16.1%, significantly outperforming the Materials Select Sector SPDR Fund’s (XLB) decline of 3.7% during the same period.
Over the past 52 weeks, VMC stock has gained 21.5% and is up 23.3% on a YTD basis, significantly outperforming the XLB, which has gained 6.2% over the past year and 4.3% in 2024.
Vulcan Materials has been trading above its 50-day and 200-day moving averages since October, indicating a bullish trend.
On Oct. 30, Vulcan Materials shares rose over 6% following its Q3 earnings report. The company reported revenue of $2 billion, which was in line with expectations but down 8.3% year-over-year, while adjusted EPS of $2.22 missed consensus estimates by 4.1%. EBITDA came in at $581 million, slightly below projections of $584.2 million, with full-year EBITDA guidance revised downward to $2 billion, below the expected $2.03 billion. Notably, the free cash flow margin surged to 24.9% from 10.8% in the prior year quarter.
Its rival, Martin Marietta Materials, Inc. (MLM), is underperforming VMC, as evidenced by a rise of 12.9% over the past year and a 10.4% gain on a YTD basis.
Analysts are cautiously optimistic about Vulcan Materials due to its recent price performance. The stock has a consensus "Moderate Buy" rating from 19 covering analysts. Its mean price target of $301.91 indicates a potential upside of 9.5% from its current level.
