As the US election nears, both the Republican and Democrat candidates have put forward their commitments towards significant infrastructure spending. Such announcements have led to a rally in the top basic materials stocks to buy. Among them are names like Martin Marietta Materials, Vulcan Materials Company, and Eagle Materials.
Private and Public Construction Spending Poised to Bounce Back
According to data compiled by the Federal Reserve Bank of St.Louis, public and private construction spending have bounced back quite resiliently after the dot com crash and the 2008 financial crisis. There is every reason to believe that construction spending will also bounce back from the COVID crisis. There have been positive figures in terms of home sales and home price increases. At the same time, tailwinds resulting from the infrastructure outlays of the presidential candidates will also likely push up infrastructure spending.
How can investors capitalize? – Top Building Materials Stocks to Buy
If there is going to be a lot of construction work, then such work will require significant amounts of building materials. Regardless of whether homes get built, highways get built, or other infrastructure gets built, then the common theme would be building materials. Therefore, investors may find it useful to consider the top building materials stocks to buy.
Among the top industry players are companies like Vulcan Materials, Eagle Materials, and Martin Marietta Materials. Vulcan Materials is up 92% for the calendar year 2020. Martin Marietta, on the other hand, has gained about 80% since the March market crash. Eagle Materials is also up 112% since hitting a low in March.
On a longer-term basis, the 5-year performance of these stocks isn’t too bad, perhaps with the exception of Eagle Materials. Vulcan Materials has gained 61%, Eagle Materials has gained 33%, and Martin Marietta has risen by 80%. So, purely on the stock performance records, Vulcan Materials stands out as it is in the green on a 5-yearly and yearly basis.