5 Best Construction Stocks To Buy Now

4. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 34

Vulcan Materials Company (NYSE:VMC) produces and supplies construction aggregates primarily in the United States. The company operates through four segments – Aggregates, Asphalt, Concrete, and Calcium. On November 2, Vulcan Materials Company (NYSE:VMC) reported a Q3 non-GAAP EPS of $1.78 and a revenue of $2.09 billion, ahead of Wall Street estimates by $0.07 and $80 million, respectively. 

On October 12, DA Davidson analyst Brent Thielman maintained a Buy rating on Vulcan Materials Company (NYSE:VMC) but trimmed the price target on the shares to $200 from $205. The analyst attributed his price target change to near-term volume slowness, but his discussions with some non-residential exposed contractor suppliers suggest that positive pipelines into 2023 “lend cautious optimism” for Vulcan Materials Company (NYSE:VMC).

Among the hedge funds tracked by Insider Monkey, 34 funds reported owning stakes worth $1.2 billion in Vulcan Materials Company (NYSE:VMC) at the end of June 2022, compared to 36 funds in the prior quarter worth $2 billion. Sharlyn C. Heslam’s Stockbridge Partners is the leading position holder in the company, with more than 2 million shares worth $286.4 million. 

ClearBridge Investments made the following comment about Vulcan Materials Company (NYSE:VMC) in its Q3 2022 investor letter:

“As always, we focus on companies with strong competitive moats, high margins and returns, recurring revenues, pricing power and growing dividends. Our emphasis on investing in companies with pricing power has enabled our portfolio companies, such as aggregates producer Vulcan Materials Company (NYSE:VMC), a top contributor in the third quarter, to admirably offset rising costs seen across the economy.”