On 10th August, the Senate passed Joe Biden’s $1 trillion infrastructure bill, and there were plans for additional spending on infrastructure to upgrade America’s railways, roads, power grids, connectivity, and water systems. The goal of this massive infrastructure spending is to revitalize an economy affected by the pandemic. The political angle of this move is to create jobs for American businesses and workers at home. However, regardless of what the economic or political motivations are, such developments are positive for construction and construction materials businesses. One of the leading producers and distributors of construction materials is Vulcan Materials Company. Based out of Birmingham, Alabama, Vulcan Materials is America’s largest producer of construction aggregates. If you are looking for building materials stocks to buy, then Vulcan Materials is one of the most dominant players in the industry.
Vulcan Materials – The Leader in Construction Aggregates
Vulcan Materials has been operating with a special focus on the aggregates market for over six decades. It is estimated to have access to 16.2 billion tonnes of construction aggregate reserves. At the average run rate, that would last for about 80 years. Over 70% of Vulcan Materials Company’s revenue comes from the aggregates business. That is the highest among all the major construction materials companies listed in the US. The estimated size of the market for construction aggregates in the US is around $27 billion. Vulcan Materials has a 50-50 split between private clients and public clients. It caters to residential and non-residential buildings in the private sector. Vulcan serves public clients to help build highways, infrastructure, and other public buildings. The company is among the top materials stock to buy for 2021.
Building Materials Stocks To Buy
Vulcan Materials was trading around $187 on 10th August 2021. The stock’s P/E ratio at the time was around 37. The stock has been on an uptrend since June 2021, gaining more than 16% over a 2-month period.