15 Small-Cap Construction and Materials Stocks Hedge Funds Are Buying

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12. RPM International Inc. (NYSE:RPM)

Market Capitalization as of April 28: $13.45 billion

Number of Hedge Fund Holders: 30

RPM International Inc. (NYSE:RPM) manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It has a focus on the construction and materials markets, which is why its offerings include services like roofing and building maintenance, sealing & bonding, flooring, and concrete repair, among others.

In FQ3 2025, the company’s PCG (Performance Coatings Group) sales declined slightly against a challenging prior year that saw a 9.2% organic sales increase to a record level. Growth in FQ3 was led by the fiberglass reinforced plastics businesses, which experienced sales in the data center construction market.

While the overall company expects flat consolidated sales in FQ4, PCG is projected to lead with modest earnings growth and margin expansion. This positive outlook for PCG is supported by the spending on high-performance buildings, growth in passive fire protection, and the acquisition of TMPC, which is a seasonal business that generates most of its sales and profits in the fourth and first quarters.

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