5 Construction Stocks to Buy Now

In this article, we will discuss the top 5 construction stocks to buy now. If you want to read our comprehensive analysis of these stocks and the construction industry, go directly to 10 Construction Stocks to Buy Now.

5. Vulcan Materials Company (NYSE:VMC)

Number of Hedge Fund Holders: 43

Vulcan Materials Company (NYSE:VMC) deals in the provision of construction aggregates, which includes sand, gravel, crushed stone, cement, asphalt and concrete products. It is the largest producer of construction aggregates in the United States. 43 hedge funds disclosed ownership of stakes in Vulcan Materials Company (NYSE:VMC) at the close of Q3 2021, the same number of hedge funds holding stakes in the company as the previous quarter. The company stands to become one of the front-running beneficiaries of the US government’s spending on infrastructure around the country, after the passing of the $1.2 trillion infrastructure bill.

On December 22, BofA analyst Michael Feniger reinstated coverage of Vulcan Materials Company (NYSE:VMC) with a ‘Buy’ rating and $233 price target, stating that he sees a “sustained growth period” for the company underpinned by “structural and cyclical” tailwinds. Despite the share price reaching recent highs, Feniger believes Vulcan Materials Company’s (NYSE:VMC) rising gross margin per ton, accelerating pricing, and multi-year visibility amid an “uncertain” macro backdrop are all praise-worthy indicators.

In February, Weitz Investment Management published its Q4 2021 investor letter, where the fund mentioned Vulcan Materials Company (NYSE:VMC). Here’s what it said:

“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.”