Infrastructure continues to be a key topic of discussion during the US election season. Both Trump and Joe Biden have unveiled their plans for upgrading infrastructure in their campaigns. President Trump unveiled a $1 trillion infrastructure package that focuses on highways, 5G, rural broadband, and other infrastructure. Joe Biden has talked about spending $2 trillion on 5G, rural broadband, sustainability, and renewable energy. Regardless of who gets elected, one thing is clear, infrastructure spending is likely to go up. Investors looking to leverage this trend would want to look at construction materials stocks to buy.
Which Construction Materials Stocks to Buy?
There are many construction-related businesses in the US. The housing market has been going strong lately. You may be tempted to look at homebuilder stocks like the Pulte Group, D.R. Horton, etc. However, the infrastructure spending that is anticipated in the US is likely to be in the non-residential segments. Therefore, you might want to consider stocks like Vulcan Materials, Martin Marietta Materials, and Eagle Materials. Vulcan Materials Company is the largest construction aggregates business in the US. It is one of the construction materials stocks to buy now.
The Stock Performance of Vulcan Materials
Vulcan Materials has gained more than 90% since the March market crash. The stock closed at $145.83 on 15th October 2020. It trades at a 0.93% dividend yield. Vulcan Materials has gained more than 9% just in the past month. The 5-year chart for the stock shows a cyclical pattern with the stock hitting a low in January 2016 before rising 68% to hit a peak in January 2018. It then dropped 38% to hit a low in October 2018 before rising almost 70% to hit a high in October 2019. After that came the pandemic-led market crash of March 2020 before the stock making a 52-week high just recently.