5 Best Construction Materials Stocks To Invest In Right Now

In this article, we discuss the 5 best construction materials stocks to invest in right now. To read the details of current economic conditions and their implications on the materials industry, go directly to the 10 Best Construction Materials Stocks To Invest In Right Now.

5. Eagle Materials Inc. (NYSE:EXP)

Number of Hedge Fund Holders: 26

Eagle Materials Inc. (NYSE:EXP) is a manufacturer and seller of heavy construction materials and light building materials through 70 facilities in 21 states. The company’s stock price has gained 20.77% year-to-date, as of April 22.

Eagle Materials Inc. (NYSE:EXP) is among the best construction materials stocks to invest in right now. Based on 6 Wall Street analysts’ ratings in the last three months, Eagle Materials Inc. (NYSE:EXP) has a consensus rating of Strong Buy. The average price target of $283.63 has an upside of 17.15% from the current levels, as of April 22.

In the fourth quarter of 2023, 26 hedge funds had stakes in Eagle Materials Inc. (NYSE:EXP), with total positions worth $143.246 million. With 142,645 shares worth $28.934 million, AQR Capital Management is the top investor in the company as of Q4 2023.

Horizon Kinetics LLC stated the following regarding Eagle Materials Inc. (NYSE:EXP) in its fourth quarter 2023 investor letter:

“One such example, which might lately be found in some strategies, is Eagle Materials Inc. (NYSE:EXP). It is one of the largest U.S. producers of cement and aggregates, as well as gypsum wallboard. Traditionally, cement makers were highly localized businesses, because cement’s high weight/value ratio makes it uneconomic to truck farther than about a 150-mile radius. A new highway or construction project in the area would be profitable, but when that activity ended, the quarry might have to close until the next time. Over many years, Eagle Materials has taken that cyclicality out of the business by acquiring other such companies, even though any single location remains subject to the historically episodic demand in its immediate environs. It now has dozens of facilities throughout the mid-west and into the sunbelt.

The highly local monopolistic characteristics of each location still remain, though, which lends that character to the entire company. And for obvious reasons, it’s unlikely that many more cement plants will be built in this country. Eagle Materials has 25 to 50 years or more of reserves at every location. This is a kind of business that can benefit from a long-term rising price environment.”