5 Best Construction Stocks To Buy Now

3. Martin Marietta Materials, Inc. (NYSE:MLM)

Number of Hedge Fund Holders: 39

Next on our list of the best construction stocks is Martin Marietta Materials, Inc. (NYSE:MLM), a North Carolina-based natural resource-based building materials company. On November 10, Martin Marietta Materials, Inc. (NYSE:MLM) declared a $0.66 per share quarterly dividend, in line with previous. The dividend is distributable on December 30, to shareholders of record on December 1. 

On November 6, Raymond James analyst Patrick Tyler Brown maintained an Outperform rating on Martin Marietta Materials, Inc. (NYSE:MLM) but lowered the price target on the stock to $380 from $410 following the Q3 results. 

According to the second quarter database of Insider Monkey, 39 funds reported owning stakes in Martin Marietta Materials, Inc. (NYSE:MLM), compared to 35 funds in the last quarter. Select Equity Group is the largest stakeholder of the company, with approximately 4 million shares worth $1.2 billion. 

Here is what Diamond Hill Capital Management specifically said about Martin Marietta Materials, Inc. (NYSE:MLM) in its Q2 2022 investor letter:

“Martin Marietta Materials, Inc. (NYSE:MLM) is the second largest aggregates producer and distributor in the US, with competitively positioned cement, ready-mix, asphalt and magnesia specialty businesses. Its share price recently sold off due to concerns about a slowdown in the US residential housing market, giving us the opportunity to initiate a position at an attractive price. We believe Martin Marietta is strategically positioned in markets with strong growth potential, in states that have multi-year department of transportation (DOT) plans approved, and the Infrastructure Investment and Jobs Act (IIJA) will begin distributing funds later this year. Additionally, in the event of an economic downturn, the company has the ability to pull from its prior playbook as a stronger, more geographically diversified player to acquire smaller companies, resulting in better market consolidation.”