5 Best Cement and Construction Materials Stocks To Buy Now

In this article, we discuss 5 best cement and construction materials stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Cement and Construction Materials Stocks To Buy Now. 

5. Commercial Metals Company (NYSE:CMC)

Number of Hedge Fund Holders: 23

Commercial Metals Company (NYSE:CMC) was founded in 1915 and is headquartered in Irving, Texas. The company primarily manufactures, recycles, and fabricates steel and metal products in the United States, Poland, China, and internationally. On October 13, Commercial Metals Company (NYSE:CMC) posted a FQ4 non-GAAP EPS of $2.45 and a revenue of $2.4 billion, beating market estimates by $0.22 and $40 million, respectively. The company on October 11 also declared a $0.16 per share quarterly dividend, a 14.3% increase from its prior dividend of $0.14. The dividend is payable on November 10, to shareholders of record on October 27. 

Citi analyst Alexander Hacking on October 14 raised the price target on Commercial Metals Company (NYSE:CMC) to $44 from $42 and maintained a Neutral rating on the shares after the FQ4 results. The analyst expects Commercial Metals Company (NYSE:CMC)’s results to remain “very strong” in the first half of 2023. The company demonstrated a positive picture on the U.S. construction cycle, the analyst told investors in a research note.

According to Insider Monkey’s data, 23 hedge funds were long Commercial Metals Company (NYSE:CMC) at the end of June 2022, compared to 21 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with 2.4 million shares worth nearly $80 million. 

Here is what Fairholme Capital Management specifically said about Commercial Metals Company (NYSE:CMC) in its Q2 2022 investor letter:

“Commercial Metals Company (NYSE:CMC) recycles scrap into rebar essential for the strengthening of concrete found everywhere. CMC is priced at five times estimated earnings and pays a 1.6% dividend that I expect to grow with profits. To better understand the Fund’s recent infrastructure investments, I recommend Vaclav Smil’s How the World Really Works.”