Vulcan Materials Company is America’s largest concrete aggregate producer. To give you a perspective, the company sold 215 million tonnes of aggregate in 2019 and 208 million tonnes in 2020. So, it is a leader in its industry. Investors looking at cyclical stocks trending up in recent months may want to consider the materials sector. With infrastructure spending poised to rise to push recovery from the pandemic-led economic downturn, materials used for building infrastructure will be in demand. Companies like Martin Marietta, Vulcan Materials, and Eagle Materials are among the stocks of the basic materials to buy. When cyclical stocks move up, there is an opportunity for significant returns in a short space of time. Such investments are relatively shorter-term and cannot be treated as buy-and-hold. Acting at the right time is what counts.
Vulcan Materials Reports Q42020 Earnings Results
On February 16th, 2021, Vulcan Materials reported its fourth-quarter 2020 earnings results. Revenues were 1% lower on a year-on-year basis at $1.175 billion compared to $1.186 billion in Q42019. Diluted earnings per share also dropped from $1.06 per share in Q42019 to $0.86 per share in Q42020.
According to J. Thomas Hill, Chief Executive Officer at Vulcan Materials, “Aggregates pricing improved by just over 3% on both a reported and mix-adjusted basis. Importantly, these pricing gains were widespread across our footprint. Our total sales cost per ton increased by 2%, while our unit cash cost of sales, which is more controllable, only grew by 1%. This led to a 5.5% gain in our aggregates gross cash profit per ton.” Suppose you are looking to buy basic materials stocks. Then Vulcan Materials is one company that you may want to watch closely.
Vulcan Materials Company’s stock closed at $168.56 on March 16th, 2021. The stock is up 15% year-to-date and has gained 81% over the preceding 12 months. Vulcan Materials was trading at a 0.88% dividend yield on March 16th, 2021.