Should You Be Excited About Long-Term Growth Prospects of CRH plc (CRH)?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund delivered strong results in the quarter. The fund appreciated 10.25% (Institutional Shares) compared to the MSCI US REIT Index’s (the REIT Index) 4.49% and the MSCI USA IMI Extended Real Estate Index’s 5.65%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as CRH plc (NYSE:CRH). Headquartered in Dublin, Ireland, CRH plc (NYSE:CRH) is a building materials solutions provider. The one-month return of CRH plc (NYSE:CRH) was -5.00%, and its shares gained 13.58% of their value over the last 52 weeks. On November 11, 2025, CRH plc (NYSE:CRH) stock closed at $112.65 per share, with a market capitalization of $75.457 billion.

Baron Real Estate Fund stated the following regarding CRH plc (NYSE:CRH) in its third quarter 2025 investor letter:

“The shares of CRH plc (NYSE:CRH) performed well in the most recent quarter following strong quarterly results and the company’s well-received Investor Day. CRH is the largest supplier of building materials such as aggregates, cement, asphalt, and concrete in North America and Europe. Its products are used for housing, infrastructure, and commercial projects. In contrast to many construction materials companies that only focus on selling higher-margin upstream materials (i.e. aggregates and cement), CRH also sells downstream materials such as asphalt and concrete, provides paving services for road and highway construction, and produces water infrastructure and outdoor living products. This vertically integrated approach is designed to maximize the returns CRH generates on its raw material reserves by not only profiting from sales of upstream materials, but by also making money on other related product offerings that use those materials as key inputs.

We continue to be excited about the longer-term growth prospects for CRH. During the company’s September 30 Investor Day, management outlined a double-digit annual earnings growth framework through 2030, which we found to be credible. We believe that CRH’s vertically integrated approach opens multiple organic and inorganic growth avenues and provides ample opportunities for business improvement and margin expansion, all of which can result in robust earnings growth. Additionally, while CRH’s valuation multiple has moved higher, we continue to believe that the current multiple does not fully reflect the quality and consistency of the business and would expect CRH’s valuation to continue to re-rate higher as U.S. investors further their education on the merits and attractive growth profile of its business.”

CRH: A Reliable Source of Materials Dividends for Global Investors

CRH plc (NYSE:CRH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 89 hedge fund portfolios held CRH plc (NYSE:CRH) at the end of the second quarter, compared to 91 in the previous quarter.  While we acknowledge the risk and potential of CRH plc (NYSE:CRH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRH plc (NYSE:CRH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered CRH plc (NYSE:CRH) and shared the list of Jim Cramer discussed recently. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.