Raleigh, North Carolina-based Martin Marietta Materials, Inc. (MLM) is a natural resource-based building materials company that supplies aggregates and building materials to the construction industry. With a market cap of $31.7 billion, Martin Marietta’s operations span the U.S. and internationally.
The building materials provider has underperformed the broader market over the past year. Over the past 52 weeks, MLM gained 17.5%, lagging behind the S&P 500 Index’s ($SPX) 24.3 returns. In 2024, MLM is up 5% compared to SPX’s 17.2% gains on a YTD basis.
Zooming in further, MLM has outpaced the S&P 500 Materials Sector SPDR’s (XLB) 12.7% returns over the past 52 weeks but underperformed the 9% gains on a YTD basis.
Shares of Martin Marietta rose marginally after its Q2 earnings release on Aug. 8. The company's revenue declined 3.1% annually to $1.8 billion, missing Wall Street’s expectation. Its net earnings to shareholders also plunged 15.5% to $294 million. Moreover, Martin Marietta's EPS of $5.26 missed the consensus estimates by 5.6%. However, the company repurchased shares worth $450 million in the first half of 2024, demonstrating its commitment to shareholders.
For the current fiscal year, ending in December, analysts expect Martin Marietta to report an EPS growth of 3.6% annually to $20.01. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the past four quarters while missing on another occasion.
Among the 16 analysts covering the MLM stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, two “Moderate Buys,” and four “Holds.”
This configuration has been consistent over the past months.
On Aug. 26, Morgan Stanley (MS) analyst Angel Castillo maintained an “Overweight” rating with a price target of $657.
MLM’s mean price target of $625.32 represents a premium of 19.3% from current price levels. The Street-high target of $715 indicates a potential upside of 36.5%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
