Vulcan Materials Company (VMC), headquartered in Birmingham, Alabama, produces and supplies construction aggregates. Valued at $32.4 billion by market cap, the company’s principal product lines are aggregates, asphalt mix and concrete, and cement.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and VMC perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the building materials industry.
As the largest U.S. producer of construction aggregates, Vulcan Materials leverages its unparalleled scale and strategic geographic footprint to maintain a competitive edge. Its extensive network of quarries and distribution facilities, concentrated in high-growth metropolitan areas, ensures a consistent supply of critical construction materials.
Despite its notable strength, VMC slipped 12.3% from its 52-week high of $278.79, achieved on Jul. 31. Over the past three months, VMC stock has declined 4.4%, underperforming the Dow Jones Industrials Average’s ($DOWI) 6.9% gains during the same time frame.
In the longer term, shares of VMC rose 7.7% on a YTD basis and climbed 15.5% over the past 52 weeks, underperforming DOWI’s YTD gains of 10.1% and 19.9% returns over the last year.
To confirm the bearish trend, VMC has been trading below its 50-day and 200-day moving averages since August end.
VMC experienced a decline in overall performance, primarily driven by reduced aggregate shipments and unfavorable weather conditions, particularly in Texas.
On Aug. 6, VMC shares closed down more than 4% after reporting its Q2 earnings results. Its adjusted EPS of $2.35 missed Wall Street expectations of $2.47. The company’s revenue was $2.01 billion, missing Wall Street forecasts of $2.03 billion.
In the competitive arena of building materials, Martin Marietta Materials, Inc. (MLM) has taken the lead over VMC, showing resilience with a 24.8% uptick over the past 52 weeks. However, MLM shares lagged behind VMC with 7% gains on a YTD basis.
Wall Street analysts are moderately bullish on VMC’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $276.69 suggests a potential upside of 13.2% from current price levels.
On the date of publication, Neha Panjwani 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.
