Martin Marietta Materials, Inc. (MLM), headquartered in Raleigh, North Carolina, is a leading supplier of aggregates and heavy-side building materials, serving the construction industry. With a market capitalization of $29.1 billion, the company plays a crucial role in infrastructure, commercial, and residential projects. Beyond aggregates, Martin Marietta produces magnesia-based materials, including high-temperature refractory products for the steel industry, chemical solutions for industrial and environmental applications, and dolomitic lime, reinforcing its diversified portfolio and market presence.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MLM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the building materials industry.
However, MLM slipped 22.8% from its 52-week high of $633.23, achieved on Nov. 6. Over the past three months, MLM stock has declined 10.3%, underperforming the Materials Select Sector SPDR Fund’s (XLB) 1% drop during the same time frame.
Over the past six months, shares of MLM plunged 8.5% and 18% over the past 52 weeks, underperforming XLB’s six-month fall of 7.1% and 4.1% dip over the last year.
To confirm the bearish trend, MLM has been trading below its 50-day and 200-day moving averages since early December.
On Feb. 12, MLM shares fell over 2% after reporting its Q4 results. While EPS of $4.79 beat Wall Street's forecast of $4.60, revenue fell short at $1.6 billion versus the expected $1.7 billion.
Despite challenges such as inclement weather and softening construction demand, MLM achieved a record gross profit of $489 million. For the current year, the company projects revenue between $6.8 billion and $7.2 billion.
In the competitive arena of building materials, Vulcan Materials Company (VMC) has taken the lead over MLM, plummeting 4.1% over the past six months and 11.9% over the past year.
Wall Street analysts are very bullish on MLM’s prospects. The stock has a consensus “Strong Buy” rating from the 18 analysts covering it, and the mean price target of $630.21 suggests a potential upside of 28.9% from 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.
