10 Best Construction Stocks to Buy Now

2. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 57

Vulcan Materials Company (NYSE:VMC) is engaged in producing and supplying construction aggregates in the US. Jefferies analyst Philip Ng revised the company’s stock price to $335 from $325. The analyst lauded the company’s pricing strength, which remains a critical factor in its financial performance. Vulcan Materials Company (NYSE:VMC) has a significant opportunity to align the pricing of its recently acquired assets with the corporate average, says the analyst. The potential for pricing optimization, together with the company’s significant capacity for M&A, is expected to act as a growth driver.

Vulcan Materials Company (NYSE:VMC)’s recent acquisitions, mainly the purchase of Superior and Wake Stone, offer numerous opportunities for growth and value creation. By consolidating its position in current markets and entering new ones, the company is expected to potentially gain greater pricing power and enhance its competitive standing. Furthermore, a larger network of facilities can optimize Vulcan Materials Company (NYSE:VMC)’s supply chain, resulting in lower transportation costs and improvement in delivery times to customers.

As per the company’s management, a positive pricing environment, together with healthy operational execution, resulted in the consistent double-digit YoY improvement in aggregates cash gross profit per ton each quarter, helping it to exit 2024 with aggregates cash gross profit per ton at $11.50.  For 2025, the pricing environment remains favorable, and Vulcan Materials Company (NYSE:VMC) remains focused on its operating disciplines to manage costs and improve efficiencies.