Vulcan Materials is America’s largest producer of concrete aggregate. The company also produces asphalt, ready-mix concrete, and other construction materials in significant volumes. The company sold 215 million tonnes of aggregates in 2019. It is far ahead of any nearest competitor in terms of scale, and that is its biggest moat. Materials stocks like Vulcan are considered to be cyclical stocks. Currently, they are experiencing a strong uptrend. Vulcan Materials’ scale, a pickup in US construction activity, and the general cyclical upcycle will are expected to drive this stock. Therefore, investors looking for basic materials stocks to buy now may want to consider Vulcan Materials.
More Info About Vulcan Materials Company
Vulcan Materials was founded in 1909 as the Birmingham Slag Company. Even today, the company is based in Birmingham, Alabama. It employs over 7000 people across 300 facilities. Vulcan Materials does business in 19 different states across the US, the District of Columbia, and internationally in Mexico. Vulcan Materials made some important acquisitions in 2005 and 2007. In 2005, it acquired 11 concrete aggregates operations as well as five asphalt plants in Indiana, Georgia, Arizona, and Tennessee. In 2007, Vulcan purchased cement and stone producing company Florida Rock. Such acquisitions have created the scale that is an important competitive advantage for Vulcan Materials today. Vulcan Materials is among the best basic materials stocks to buy.
Vulcan Materials Company’s stock was trading around $172 on 15th March 2021. The dividend yield on offer at the time was 0.86%. Over a 1-month period, the stock had gained about 6%. Over a 1-year period, the stock is up over 80%, with a consistently rising chart. Another cement and concrete producer, considered to be a peer of Vulcan Materials, is Eagle Materials. Its stock was trading around $135 on 15th March 2021 and offering a dividend yield of 0.3%. Eagle Materials was up 11.5% over the preceding month and up 154% on a 1-year basis.