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2 Concrete & Aggregates Stocks to Ride Industry Momentum
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The Zacks Building Products - Concrete & Aggregates industry is navigating 2025 with cautious optimism. Public sector demand remains the dominant tailwind, buoyed by funding from the Infrastructure Investment and Jobs Act (IIJA). While the residential and private nonresidential sectors are facing headwinds from high interest rates and affordability issues, the industrial segment, especially data center and warehouse construction, is stabilizing. Although uncertainties in the macroeconomic landscape, weather-related issues, and increased labor costs pose challenges for the industry players, companies like Vulcan Materials Company (VMC and Martin Marietta Materials (MLM - Free Report) have been leveraging the favorable trends to their advantage. Overall, while private demand is volatile and weather disruptions are inevitable, the strong and predictable growth from public sector investment is expected to underpin stable industry performance in 2025.
Industry Description
The Zacks Building Products - Concrete & Aggregates industry consists of manufacturers, distributors and sellers of construction materials like aggregates and concrete along with other related items for public infrastructure, residential and non-residential, as well as other end markets. The materials also include gypsum wallboard, recycled paperboard, concrete blocks, ready-mix concrete, and oil and gas proppants. The industry players are also involved in designing, engineering, manufacturing, marketing, and installation of external building products for commercial, residential, and repair and remodel markets in domestic as well as international markets.
3 Trends Shaping the Future of Concrete & Aggregates Industry
Focus on Reviving Infrastructure: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act collectively signify a substantial commitment to bolstering American competitiveness. These three enacted laws are aimed at revitalizing American infrastructure, expediting the shift toward a sustainable economy, and fortifying the domestic semiconductor sector. These bills comprise new investments in almost every infrastructure sector, including transportation, energy, broadband and water. The U.S. administration’s endeavor to pump money for rebuilding the nation's roads, bridges and other infrastructure would give construction companies a solid foundation for growth. The residential and private nonresidential markets remain challenged by elevated interest rates and affordability constraints, but momentum is returning in the industrial space, led by steady demand for data center and warehouse construction.
Acquisitions & Focus on Operating Efficiency: The industry participants follow a well-chalked-out acquisition plan to enhance domestic and international portfolios. Moreover, companies are increasingly focusing on reducing controllable costs and maximizing operating efficiency across business lines to generate higher earnings and cash flows. The industry players have also been experiencing a solid pricing environment across their product portfolios, thereby helping to boost margins.
Fluctuation in Input Prices, Weather Woes & Shortage of Skilled Labors: The industry players are struggling with escalating material expenses, the shortage of skilled laborers and rising wage costs. The companies use electricity, diesel fuel, liquid asphalt and other petroleum-based resources. Hence, supply-related woes and significant fluctuations in the prices of these resources affect operating results. Also, businesses are exposed to weather-related risks affecting production schedules and profitability. Excessive rainfall, flooding or severe droughts jeopardize shipments and production. The first and fourth quarters are affected mainly by winter. Again, hurricanes in the Atlantic Ocean and Gulf Coast are most active during these quarters. These impediments may bump up costs and mar the industry participants’ profits.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Building Products - Concrete & Aggregates industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #96, which places it in the top 39% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since April 2025, the industry’s earnings estimates for 2025 have increased to $2.23 per share from $2.08.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500 & Sector
The Zacks Building Products - Concrete & Aggregates industry has lagged the Zacks S&P 500 Composite and the broader Zacks Construction sector over the past year.
Stocks in this industry have collectively lost 7.6% versus the broader sector’s decrease of 4.3% over the past year. Meanwhile, the S&P 500 has gained 10.8% in the same period.
One-Year Price Performance
Concrete & Aggregates Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing Building Products - Concrete & Aggregates stocks, the industry is currently trading at 21.4X versus the S&P 500’s 21.59X and the sector’s 18.17X.
Over the past five years, the industry has traded as high as 24.39X, as low as 13.86X and at a median of 20.08X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
Vulcan Materials Company: This Birmingham, AL-based company produces and supplies construction aggregates, asphalt mix, as well as ready-mixed concrete. The company’s focus on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing, and Logistics Innovation — should enhance price performance and operating efficiencies. Its focus on a systematic inorganic strategy for expansion is adding to the positives. While private construction headwinds and macro uncertainties pose challenges, Vulcan’s geographic advantage, diversified product mix, and robust balance sheet position it to navigate volatility and capture long-term value.
Vulcan, a Zacks Rank #3 (Hold) stock, has gained 2.4% over the past year. Also, the 2025 earnings per share (EPS) estimate has increased to $8.63 from $8.49 over the past seven days. Earnings for 2025 are expected to grow 14.6% from a year ago. This company surpassed earnings estimates in two of the trailing four quarters, with the average surprise being 10%. It has a three-to-five-year expected EPS growth rate of 13.1%.
Price and Consensus: VMC
Martin Marietta: Based in Raleigh, NC, Martin Marietta produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. Martin Marietta is capitalizing on strategic acquisitions in rapidly expanding markets and targeted divestitures, supported by robust demand in public infrastructure and data center development. Through its SOAR 2025 initiatives, the company is prioritizing portfolio-optimizing transactions aimed at lowering exposure to cyclical downstream segments, broadening its aggregates presence, and enhancing its margin-generation capabilities. The company’s strong execution, pricing power, and exposure to favorable end markets place it on a solid trajectory through 2025 and beyond.
Martin Marietta, a Zacks Rank #3 stock, has lost 7% over the past year. Also, the 2025 EPS estimate has increased to $18.86 from $18.66 over the past 30 days. This company surpassed earnings estimates in one of the trailing four quarters and missed on the other three occasions, with the average negative surprise being 2.8%.
Price and Consensus: MLM
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2 Concrete & Aggregates Stocks to Ride Industry Momentum
The Zacks Building Products - Concrete & Aggregates industry is navigating 2025 with cautious optimism. Public sector demand remains the dominant tailwind, buoyed by funding from the Infrastructure Investment and Jobs Act (IIJA). While the residential and private nonresidential sectors are facing headwinds from high interest rates and affordability issues, the industrial segment, especially data center and warehouse construction, is stabilizing. Although uncertainties in the macroeconomic landscape, weather-related issues, and increased labor costs pose challenges for the industry players, companies like Vulcan Materials Company (VMC and Martin Marietta Materials (MLM - Free Report) have been leveraging the favorable trends to their advantage. Overall, while private demand is volatile and weather disruptions are inevitable, the strong and predictable growth from public sector investment is expected to underpin stable industry performance in 2025.
Industry Description
The Zacks Building Products - Concrete & Aggregates industry consists of manufacturers, distributors and sellers of construction materials like aggregates and concrete along with other related items for public infrastructure, residential and non-residential, as well as other end markets. The materials also include gypsum wallboard, recycled paperboard, concrete blocks, ready-mix concrete, and oil and gas proppants. The industry players are also involved in designing, engineering, manufacturing, marketing, and installation of external building products for commercial, residential, and repair and remodel markets in domestic as well as international markets.
3 Trends Shaping the Future of Concrete & Aggregates Industry
Focus on Reviving Infrastructure: The Infrastructure Investment and Jobs Act, the Creating Helpful Incentives to Produce Semiconductors and Science Act, and the Inflation Reduction Act collectively signify a substantial commitment to bolstering American competitiveness. These three enacted laws are aimed at revitalizing American infrastructure, expediting the shift toward a sustainable economy, and fortifying the domestic semiconductor sector. These bills comprise new investments in almost every infrastructure sector, including transportation, energy, broadband and water. The U.S. administration’s endeavor to pump money for rebuilding the nation's roads, bridges and other infrastructure would give construction companies a solid foundation for growth. The residential and private nonresidential markets remain challenged by elevated interest rates and affordability constraints, but momentum is returning in the industrial space, led by steady demand for data center and warehouse construction.
Acquisitions & Focus on Operating Efficiency: The industry participants follow a well-chalked-out acquisition plan to enhance domestic and international portfolios. Moreover, companies are increasingly focusing on reducing controllable costs and maximizing operating efficiency across business lines to generate higher earnings and cash flows. The industry players have also been experiencing a solid pricing environment across their product portfolios, thereby helping to boost margins.
Fluctuation in Input Prices, Weather Woes & Shortage of Skilled Labors: The industry players are struggling with escalating material expenses, the shortage of skilled laborers and rising wage costs. The companies use electricity, diesel fuel, liquid asphalt and other petroleum-based resources. Hence, supply-related woes and significant fluctuations in the prices of these resources affect operating results. Also, businesses are exposed to weather-related risks affecting production schedules and profitability. Excessive rainfall, flooding or severe droughts jeopardize shipments and production. The first and fourth quarters are affected mainly by winter. Again, hurricanes in the Atlantic Ocean and Gulf Coast are most active during these quarters. These impediments may bump up costs and mar the industry participants’ profits.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Building Products - Concrete & Aggregates industry is a six-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #96, which places it in the top 39% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates solid near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since April 2025, the industry’s earnings estimates for 2025 have increased to $2.23 per share from $2.08.
Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms S&P 500 & Sector
The Zacks Building Products - Concrete & Aggregates industry has lagged the Zacks S&P 500 Composite and the broader Zacks Construction sector over the past year.
Stocks in this industry have collectively lost 7.6% versus the broader sector’s decrease of 4.3% over the past year. Meanwhile, the S&P 500 has gained 10.8% in the same period.
One-Year Price Performance
Concrete & Aggregates Industry's Current Valuation
On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing Building Products - Concrete & Aggregates stocks, the industry is currently trading at 21.4X versus the S&P 500’s 21.59X and the sector’s 18.17X.
Over the past five years, the industry has traded as high as 24.39X, as low as 13.86X and at a median of 20.08X, as the chart below shows.
Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500
Industry’s P/E Ratio (Forward 12-Month) Versus Sector
2 Concrete & Aggregates Stocks to Keep an Eye On
Below, we have discussed two stocks from the Zacks Concrete & Aggregates universe that have growth potential. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Vulcan Materials Company: This Birmingham, AL-based company produces and supplies construction aggregates, asphalt mix, as well as ready-mixed concrete. The company’s focus on four strategic initiatives — Commercial Excellence, Operational Excellence, Strategic Sourcing, and Logistics Innovation — should enhance price performance and operating efficiencies. Its focus on a systematic inorganic strategy for expansion is adding to the positives. While private construction headwinds and macro uncertainties pose challenges, Vulcan’s geographic advantage, diversified product mix, and robust balance sheet position it to navigate volatility and capture long-term value.
Vulcan, a Zacks Rank #3 (Hold) stock, has gained 2.4% over the past year. Also, the 2025 earnings per share (EPS) estimate has increased to $8.63 from $8.49 over the past seven days. Earnings for 2025 are expected to grow 14.6% from a year ago. This company surpassed earnings estimates in two of the trailing four quarters, with the average surprise being 10%. It has a three-to-five-year expected EPS growth rate of 13.1%.
Price and Consensus: VMC
Martin Marietta: Based in Raleigh, NC, Martin Marietta produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. Martin Marietta is capitalizing on strategic acquisitions in rapidly expanding markets and targeted divestitures, supported by robust demand in public infrastructure and data center development. Through its SOAR 2025 initiatives, the company is prioritizing portfolio-optimizing transactions aimed at lowering exposure to cyclical downstream segments, broadening its aggregates presence, and enhancing its margin-generation capabilities. The company’s strong execution, pricing power, and exposure to favorable end markets place it on a solid trajectory through 2025 and beyond.
Martin Marietta, a Zacks Rank #3 stock, has lost 7% over the past year. Also, the 2025 EPS estimate has increased to $18.86 from $18.66 over the past 30 days. This company surpassed earnings estimates in one of the trailing four quarters and missed on the other three occasions, with the average negative surprise being 2.8%.
Price and Consensus: MLM