Stock Entry Point Article​

Vulcan Materials Company has a strong Q2 amid the pandemic

Vulcan Materials reported its Q22020 earnings on 4th August 2020. Revenues were almost the same as compared to Q22019 at $1.32 billion. Operating earnings were up from $276 million to $298 million, a rise of 8%. Net income per share was $1.59 as opposed to $1.5 per share in Q22019. Analysts had expected revenue of $1.3 billion and a net income per share of $1.38. So the actual results comfortably beat analyst estimates. The Aggregates segment gross profit increased by 7% while the Asphalt, Calcium, and Concrete segment gross profit increased by 10% y-o-y.

The housing market is strong

While historically low mortgage rates are providing the ideal tailwinds to the housing sector, the general economic sentiment in the sector also seems to be changing. According to Vulcan Materials CEO, J. Thomas Hill, “Certain leading indicators of construction activity appear to be showing signs of improvement, both sequentially and year-over-year. Housing has been the most resilient of our market segments, with June though, showing improvement and single-family housing leading the way. Permits and sorts have improved at a fast rate in our footprint, than in other states. Private nonresidential construction is the most variable end-use, reflecting a wide range of building categories, each driven by different factors.”

Performances of the top construction materials stocks

Companies like Martin Marietta Materials, Vulcan Materials, and Eagle Materials are some of the well-known businesses in the construction materials sector. Martin Marietta’s stock closed at $226.98 on 17th September 2020, down 17.94% year-to-date and up 5.63% in the last one month. Eagle Materials, meanwhile, closed at $88.77 on 17th September 2020, down 2.68% in the year 2020 but up 6.71% in the past month. Vulcan Materials stock closed at $133.75 on September 17th, 2020, up 3.97% for the past month. The stock is down 6.29% for the year 2020.


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