10 Best Construction Stocks to Buy Now

4. Eagle Materials Inc. (NYSE:EXP)

Number of Hedge Fund Holders: 36

Eagle Materials Inc. (NYSE:EXP) is engaged in manufacturing and selling heavy construction materials and light building materials in the US. The company continued to advance its long-term growth and value-creation strategies. These include Eagle Materials Inc. (NYSE:EXP)’s announcement of the acquisition of Bullskin Stone and Lime, LLC, a pure-play aggregates business in Western Pennsylvania, and maintenance of its balance sheet strength, ending the quarter with a debt of $1.0 billion and a net leverage ratio of 1.2x.

Moving forward, steady employment, chronically short housing supply, and its cost-structure advantages continue to offer positive conditions for Eagle Materials Inc. (NYSE:EXP)’s Gypsum Wallboard business amidst this dynamic environment. On the cement side, spending from the Infrastructure Investment and Jobs Act (IIJA) remains in the beginning phases, which can support multiple years of robust cement demand. Furthermore, the acquisition of Bullskin Stone & Lime further advances Eagle Materials Inc. (NYSE:EXP)’s long-term growth strategy by adding a pure-play aggregates business complementing and extending its network of aggregates quarries and cement plants and terminals.

Bretton Capital Management, an investment management company, released Q4 2024 investor letter. Here is what the fund said:

“Our most recent addition, Eagle Materials Inc. (NYSE:EXP), saw strong demand in divisions. The cement industry in the US continues to be severely capacity-constrained, leading to cement being effectively “sold out” each year and cement prices rising 12%. Its wallboard business declined slightly from the slower real estate market. Overall, earnings per share increased 9%, and we are up 8% so far on the stock.”