The global infrastructure industry is experiencing significant growth, driven by rising demand from infrastructure investments, government initiatives, and sustainability initiatives. So, quality stocks such as Owens Corning (OC), United States Lime & Minerals (USLM), and Griffon Corporation (GFF) present promising investment opportunities as they explore new technologies and sustainable materials to boost efficiency and meet market demands.
Population growth and urbanization are driving demand for infrastructure, spurring investments in housing, transportation, utilities, and urban upgrades to support expanding cities and growing mobility needs. Moreover, companies are focusing on enhancing productivity and reducing environmental impact by adopting low-carbon solutions and green building practices.
In addition, the growth of the building materials industry is fueled by the expanding demand for infrastructure projects across sectors like manufacturing, education, and healthcare. The market size is expected to grow from $1.35 trillion in 2024 to $2 trillion by 2034 at a CAGR of 4%.
Furthermore, the Biden-Harris Administration’s announcement of $1.8 billion in grants for 148 infrastructure projects across the United States illustrates the government’s commitment to revitalizing this vital sector. The funding could impact various states and support the development of essential infrastructure in the coming years.
Considering these positive developments, let's delve deeper into Industrial - Building Materials stocks:
Stock #3: United States Lime & Minerals, Inc. (USLM)
USLM specializes in producing lime and limestone products, including quicklime, hydrated lime, lime slurry, and pulverized limestone. These products serve diverse end-users, such as construction contractors, industrial manufacturers, environmental facilities, oil and gas service companies, and poultry producers.
On December 13, USLM paid a regular quarterly cash dividend of $0.05 per share on the company’s common stock. It pays an annual dividend of $0.20, which translates to a dividend yield of 0.14% at the prevailing price levels.
During the fiscal third quarter that ended September 30, 2024, USLM’s revenues increased 19.4% year-over-year to $89.43 million. Its operating profit grew 60.2% from the year-ago value to $38.14 million. In addition, the company’s net income and income per share came in at $33.35 million and $1.16, up 60.9% and 58.9% over the prior-year quarter, respectively.
Over the past year, the stock has gained 217.9% to close the last trading session at $144.18. It soared 213% year-to-date.
USLM’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
USLM has an A grade in Quality and a B in Growth and Momentum. It is ranked #12 out of 42 stocks in the Industrial - Building Materials industry.
Beyond what we have stated above, we also have given USLM grades for Value, Stability, and Sentiment. Get all the USLM’s ratings here.
Stock #2: Owens Corning (OC)
OC manufactures building materials across Roofing, Insulation, and Composites segments, offering products like asphalt shingles, insulation solutions, and glass fiber reinforcements. These serve industries including construction, automotive, energy, and retail through distributors, contractors, and manufacturers.
On December 5, OC announced a 15% increase in its quarterly cash dividend to $0.69 per share. The dividend will be paid on January 17, 2025. It pays an annual dividend of $2.76, which translates to a dividend yield of 1.44% at the prevailing price levels.
In the fiscal third quarter ended September 30, 2024, OC’s net sales increased 22.9% year-over-year to $ 3.05 billion. Its operating income grew 10.2% from the year-ago value to $ 509 million. In addition, the company’s adjusted earnings and adjusted EPS stood at $385 million and $4.38, up 1.3% and 4.8% over the prior-year quarter, respectively.
Street expects OC’s revenue and EPS for the year ending December 31, 2024, to increase 13.6% and 7.4% year-over-year to $ 10.99 billion and $15.49, respectively. It surpassed the consensus EPS estimates in all of the trailing four quarters.
Shares of OC have gained 24.4% over the past year and is up 25% year-to-date to close the last trading session at $185.26.
OC’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, equating to a Buy in our proprietary rating system.
OC has a B grade in Growth and Momentum. It is ranked #9 in the same industry.
To access OC’s Value, Stability, Sentiment, and Quality ratings, click here.
Stock #1: Griffon Corporation (GFF)
GFF offers products such as garage doors, fire doors, and shutters for construction and remodeling, along with tools, garden equipment, home organization solutions, and cleaning products, catering to both consumer and professional markets. It operates globally through two segments: Home and Building Products; and Consumer and Professional Products.
On November 134, GFF announced a regular quarterly cash dividend of $0.18 per share, payable on December 18. It pays an annual dividend of $ 0.72, which translates to a dividend yield of 0.92% at the prevailing price levels.
On November 13, GFF announced that it had authorized the repurchase of an additional $400 million worth of shares of GFF common stock. From April 2023 through November 12, GFF repurchased 9.4 million shares, representing 16.4% of its outstanding shares, for a total of $458 million, with an average price of $48.74 per share.
GFF’s revenue increased 2.9% year-over-year to $ 659.67 million in the fiscal fourth quarter that ended on September 30, 2024. Its income from operations came in at $111.67 million, up 40.6% year-over-year. In addition, the company’s adjusted net income reached $ 70.94 million, up 12.5% from the same quarter last year, and adjusted EPS was $1.47, indicating an increase of 23.5% from the prior-year quarter.
Street expects GFF’s revenue for the fiscal first quarter of 2025 (ending December 31, 2024) to increase year-over-year to $ 637.58 million. Its EPS for the same quarter is likely to increase 11.6% year-over-year to $1.19. In addition, it surpassed the consensus revenue and EPS estimates in three of the trailing four quarters.
Shares of GFF have gained 38.8% over the past year and is up 28.8% year-to-date to close the last trading session at $78.52.
GFF’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, equating to a Strong Buy in our proprietary rating system.
It has a B grade for Growth, Value, Momentum, and Quality. It tops the same industry.
Click here to see GFF’s ratings for Stability and Sentiment.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
3 Stocks to DOUBLE This Year >
OC shares were unchanged in premarket trading Tuesday. Year-to-date, OC has gained 26.84%, versus a 28.87% rise in the benchmark S&P 500 index during the same period.
About the Author: Kritika Sarmah
Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities.
3 Infrastructure Stocks to Buy for a Strong 2025 Foundation StockNews.com
