Martin Marietta Materials, Inc. (MLM), headquartered in Raleigh, North Carolina, is a leading supplier of construction aggregates and heavy building materials in the United States. With a market cap of $33 billion, the company distributes cement and aggregates like crushed stone, sand, and gravel through a network of quarries, mines, and distribution yards.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Martin Marietta fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the basic materials industry. Martin Marietta Materials showcases its market leadership as one of the largest U.S. producers of construction aggregates. It leverages a diverse product portfolio and strategic market presence across Texas, Colorado, North Carolina, Georgia, and Florida for robust supply chain management and reduced market dependency.
Despite its strengths, Martin Marietta has slipped 14.8% from its 52-week high of $626.67 set on February 23. MLM stock has dipped 12.8% in the past three months, lagging behind the S&P 500 Index’s ($SPX) 5.1% gain during the same time frame.
In the longer term, MLM stock surged 6.7% on a YTD basis and has climbed 22% over the past 52 weeks, trailing behind SPX’s 14.6% returns in 2024 and 26.3% gains over the past year.
Moreover, Martin Marietta’s stock has consistently traded above its 200-day moving average since late October.
On April 30, the stock fell 2.6% following its Q1 earnings release. MLM reported adjusted earnings of $1.93 per share, surpassing Wall Street's expectations by 2.7%. However, the company posted revenue of $1.3 billion, falling short of forecasts.
The company achieved many notable achievements in Q1, including over $4.5 billion in portfolio-enhancing transactions, a 14% increase in aggregate gross profit per ton, and record quarterly gross profit in the Magnesia Specialties business, despite weather challenges. As a result, the company has raised its fiscal 2024 adjusted EBITDA guidance to $2.4 billion. Moreover, the company expects continued pricing momentum and strong product demand from federal and state infrastructure investments, industrial activity, data centers, and energy projects to offset weaker residential and warehouse construction demand.
Meanwhile, MLM’s rival, Vulcan Materials Company (VMC), has outperformed Martin Marietta Materials in 2024, surging 7.9% on a YTD basis. But, over the past year, VMC has returned 14.1%, falling behind MLM’s double-digit gains.
In sync with MLM’s mixed price performance, Wall Street analysts maintain a cautiously bullish stance on MLM's outlook, with a consensus "Moderate Buy" rating from the 16 analysts covering it. The mean price target of $645.62 suggests a potential upside of 20.7% from the current price levels.
On the date of publication, Kritika Sarmah 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.
