Infrastructure and capex are two terms increasingly being used in the mainstream media. There are expectations that the new Biden administration will embark on an infrastructure development program to push the economy towards recovery after the year-long pandemic. Higher infrastructure spending can benefit some of the best basic materials stocks right now. Additionally, cyclical sectors like energy, materials, and metals are going through a rally. It appears that the cyclical stocks are in an upcycle, which will benefit materials stocks like Vulcan Materials Company. It is the largest producer of construction materials like construction aggregates in the US. The company is based out of Birmingham, Alabama, and has performed quite well over the last few months.
Ratings Agency Fitch Agrees With Vulcan’s Positive Outlook
Rating agency Fitch recently upgraded the ratings of Vulcan Materials Company from BBB- to BBB. This was done as Fitch believed that Vulcan’s financial and credit metrics have improved. Vulcan has also exceeded Fitch’s base case forecast, which was done back in May 2020. Fitch also said that Vulcan has a geographically diverse quarry network and a leading market position in the US aggregates market. Besides, the US construction sector is going through an upcycle, and together with infrastructure spending as well as local and state funding, things are looking up for Vulcan Materials at this time. If you are an investor looking for basic materials stocks to invest in, then Vulcan Materials is one company that you may want to research more closely.
Vulcan Materials Company’s stock has doubled since the March 2020 market crash. It closed the day on 15th March 2021 at $172.49. The stock had gained about 29% over the preceding six months. Meanwhile, Martin Marietta’s stock closed at $343.71 on 15th March 2021. It was up almost 53% over a 6-month period and had gained 123% since the March 2020 market fall. Eagle Materials also had a similar trend, rising 53% over the preceding six months after closing the day on 15th March 2021 at $135.17. The stock was up 158% since March 2020.