We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Higher input costs and pricing pressure in construction materials are playing a part in why it may be best to avoid Vulcan Materials (VMC - Free Report) stock at the moment.
Correlating with such, EPS estimates for Vulcan have been trending downward as analysts expect weaker growth than in prior years and compressed margins.
As the largest supplier of construction aggregates in the United States, Vulcan could start to take the brunt of the pain in regard to what has also been slowing demand for aggregate production.
Keeping this in mind, it’s noteworthy that Vulcan’s Zacks Building Products-Concrete and Aggregates Industry is currently in the bottom 1% of over 240 Zacks industries.
Aggregate Production & Demand Issues
Six Straight Quarters of Declining Production
U.S. Geological Survey (USGS) data shows aggregate production volumes fell for six consecutive quarters up until Q2 of 2025.
Crushed stone production was down 5.5% at midyear 2025, and shipments were down 4.4% across April-June.
Material producers cited inclement weather as a major factor reducing output and demand.
Broad Construction Slowdown
U.S. construction growth dropped sharply from 6.6% in 2024 to just 1.4% in 2025.
The slowdown spanned all major construction sectors, including residential, commercial, industrial, and infrastructure.
Weak investor confidence is a key driver of reduced project starts, which directly lowers aggregate consumption. When investors (developers, lenders, private equity, REITs, industrial owners) lose confidence in the economic outlook, they pull back on committing capital to new construction. That hesitation cascades through the entire project pipeline.
Post-Boom Normalization
After five years of strong growth spurred by post-pandemic demand (over 40% cumulative), construction spending is now rising roughly 2% year over year, which feels like stagnation when adjusted for inflation.
Vulcan’s Q4 Earnings Miss
Causing concern amid slowing demand for construction aggregatesis that Vulcan missed Q4 EPS expectations by 20% last month, with quarterly earnings at $1.70 per share compared to estimates of $2.13. This was also a steep drop from EPS of $2.17 in Q4 2024.
Following Vulcan's Q4 earnings miss, EPS estimates for FY26 and FY27 have continued to trend lower and are now down over 10% and 3% in the last 60 days, respectively.
Image Source: Zacks Investment Research
Magnifying the alarming drop in EPS revisions is that Vulcan’s 29X forward earnings multiple is 30% above its Zacks industry peers and reflects an even sharper premium to the benchmark S&P 500's 22X.
Image Source: Zacks Investment Research
Bottom Line
Although Vulcan Materials is still expected to post steady EPS growth, the noticeably weakening earnings outlook is concerning for a stock that investors are paying over $260 a share for. There could be downside risk ahead, as this price point still appears to reflect sentiment for what were much loftier EPS projections.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Bear of the Day: Vulcan Materials (VMC)
Higher input costs and pricing pressure in construction materials are playing a part in why it may be best to avoid Vulcan Materials (VMC - Free Report) stock at the moment.
Correlating with such, EPS estimates for Vulcan have been trending downward as analysts expect weaker growth than in prior years and compressed margins.
As the largest supplier of construction aggregates in the United States, Vulcan could start to take the brunt of the pain in regard to what has also been slowing demand for aggregate production.
Keeping this in mind, it’s noteworthy that Vulcan’s Zacks Building Products-Concrete and Aggregates Industry is currently in the bottom 1% of over 240 Zacks industries.
Aggregate Production & Demand Issues
Six Straight Quarters of Declining Production
Broad Construction Slowdown
Post-Boom Normalization
Vulcan’s Q4 Earnings Miss
Causing concern amid slowing demand for construction aggregates is that Vulcan missed Q4 EPS expectations by 20% last month, with quarterly earnings at $1.70 per share compared to estimates of $2.13. This was also a steep drop from EPS of $2.17 in Q4 2024.
Image Source: Zacks Investment Research
Declining EPS Revisions Spark P/E Premium Concerns
Following Vulcan's Q4 earnings miss, EPS estimates for FY26 and FY27 have continued to trend lower and are now down over 10% and 3% in the last 60 days, respectively.
Image Source: Zacks Investment Research
Magnifying the alarming drop in EPS revisions is that Vulcan’s 29X forward earnings multiple is 30% above its Zacks industry peers and reflects an even sharper premium to the benchmark S&P 500's 22X.
Image Source: Zacks Investment Research
Bottom Line
Although Vulcan Materials is still expected to post steady EPS growth, the noticeably weakening earnings outlook is concerning for a stock that investors are paying over $260 a share for. There could be downside risk ahead, as this price point still appears to reflect sentiment for what were much loftier EPS projections.