5 Construction Stocks Hedge Funds Like as Spending Slumps

Below we present the list of 5 Construction Stocks Hedge Funds Like as Spending Slumps. For our methodology and a more comprehensive list please see 10 Construction Stocks Hedge Funds Like as Spending Slumps.

5. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Shareholders: 36

Vulcan Materials Company (NYSE:VMC) was in a three-way tie for fifth on this list, but takes the #5 spot thanks its flat hedge fund sentiment quarter-over-quarter, while KBR, Inc. (NYSE:KBR) and Martin Marietta Materials, Inc. (NYSE:MLM) both had small ownership declines. Longer-term though, VMC’s ownership among hedge funds has also fallen quite a bit, dropping by 36% over the last three years.

Vulcan Materials Company (NYSE:VMC) had a mixed Q2 that saw sales surge by 43.6% year-over-year to $1.95 billion on the strength of its U.S. Concrete acquisition. Vulcan Materials achieved higher shipments across each of its product lines during the quarter, including a 339% year-over-year surge in concrete segment sales. However, adjusted EPS of $1.53 was down from a year ago and missed estimates, due in part to higher costs for fuel and parts.

The Weitz Investment Management Partners Value Fund is bullish on several facets of Vulcan Materials Company (NYSE:VMC)’s operations, saying this about the company in its Q4 2021 investor letter:

“Vulcan Materials contributed to returns due to solid results and a bright outlook for the company’s prosaic, essential products. Aggregate volumes and backlogs are strong across end markets, pricing momentum is robust, and the federal infrastructure bill adds visibility into the amount of money that will be allocated to infrastructure projects.”