Raleigh, North Carolina-based Martin Marietta Materials, Inc. (MLM) is a natural resource-based building materials company that supplies aggregates and heavy-side building materials to the construction industry. With a market cap of $30 billion, the company also manufactures and markets magnesia-based products, including heat-resistant refractory products for the steel industry, chemical products for industrial and environmental uses, and dolomitic lime.
Shares of this leading supplier of aggregates and heavy building materials have underperformed the broader market over the past year. MLM has declined 10.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, MLM stock is down 5.1%, compared to SPX’s 1.3% rise on a YTD basis.
Narrowing the focus, MLM’s underperformance is also apparent compared to the Vanguard Materials Index Fund ETF (VAW). The exchange-traded fund has gained about 2.5% over the past year. Moreover, the ETF’s 4.5% gains on a YTD basis outshine the stock’s losses over the same time frame.
Adverse weather conditions, such as hurricanes, significantly impacted MLM's performance by causing delays in product delivery and restricting the company's distribution operations.
On Feb. 12, MLM shares closed down more than 2% after reporting its Q4 results. Its EPS of $4.79 exceeded Wall Street expectations of $4.60. The company’s revenue was $1.6 billion, missing Wall Street forecasts of $1.7 billion. MLM expects full-year revenue in the range of $6.8 billion to $7.2 billion.
For fiscal 2025, ending in December, analysts expect MLM’s EPS to decline 39.7% to $19.53 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 17 analysts covering MLM stock, the consensus is a “Strong Buy.” That’s based on 13 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is more bullish than two months ago, with 12 analysts suggesting a “Strong Buy.”
On Feb. 18, Morgan Stanley (MS) analyst Angel Castillo maintained a “Buy” rating on MLM with a price target of $622, implying a potential upside of 26.9% from current levels.
The mean price target of $634.17 represents a 29.3% premium to MLM’s current price levels. The Street-high price target of $730 suggests an ambitious upside potential of 48.9%.
