5 Best Infrastructure Stocks To Buy Now

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

Number of Hedge Fund Holders: 39

Next on our list of the best infrastructure stocks is Martin Marietta Materials, Inc. (NYSE:MLM), a natural resource-based building materials company that supplies aggregates, crushed stone, sand, gravel products, ready mixed concrete and asphalt, and specialty cement for use in infrastructure projects, as well as non-residential and residential construction markets. 

On October 10, Citi analyst Anthony Pettinari reiterated a Buy rating on Martin Marietta Materials, Inc. (NYSE:MLM) but slashed the price target on the stock to $386 from $410. The analyst trimmed estimates in North America building products ahead of the Q3 earnings season to factor in weak residential demand, ongoing cost pressure, unfavorable weather, and labor and material availability issues. Within building products, the analyst prefers aggregates producers as he expects higher public construction to broadly offset softening residential demand.

According to Insider Monkey’s data, 39 hedge funds held stakes in Martin Marietta Materials, Inc. (NYSE:MLM) at the end of June 2022, compared to 35 funds in the last quarter. Select Equity Group featured as the largest position holder in 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.”