Stock Entry Point Article​

Vulcan Materials Company – Building Materials Stock

Vulcan Materials is an essential player in the American infrastructure industry. It mines and sells construction aggregate, a key raw material used in making residential and non-residential infrastructure. Vulcan Materials is headquartered in Birmingham, Alabama but has a presence and well-established network from the east coast to the west coast of the United States. The products of Vulcan Materials are used in repairing and building roads, ports, bridges, government buildings, school buildings, churches, hospitals, and a wide range of other infrastructure. With the incoming establishment in the US finally succeeding in getting the infrastructure bill moving through the Senate, one can expect plenty of construction activity in the future. So, investors looking to buy building materials stock will want to focus on the dominant players like Vulcan and Martin Marietta.

Vulcan Materials Q22021 Shows Positive Trend Continuation

Vulcan Materials reported its second-quarter 2021 earnings results on 4th August 2021. Total revenue was up from $1.32 billion in Q22020 to $1.36 billion. Gross profit per ton improved from $6.25 to $6.39 year over year. Adjusted earnings per share on a diluted basis, however, was slightly down from $1.6 in Q22020 to $1.57. Company CEO J. Thomas Hill revealed that Vulcan Materials saw strong demand from single and multi-family residential developments. Activity in building highways and other public infrastructure was also encouraging. The gross profit margin for the second quarter also increased 40 basis points due to higher volumes, better pricing, and more effective cost controls. Vulcan Materials looks to be well-positioned to take advantage of the future growth that is expected in construction and infrastructure building in America. It is one of the building materials stock to be watched closely.

Buy Building Materials Stock

Vulcan Materials stock closed at $189.79 on 13th August 2021. It has been up almost 8% over the preceding month. On a 1-year basis, the stock is up a strong 46%. As of 13th August 2021, Vulcan Materials was trading at a PE of around 37.


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