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Martin Marietta (MLM) Hits a 52-Week High: What's Driving It?
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Martin Marietta Materials, Inc. (MLM - Free Report) touched a new 52-week high of $443.26 on Jun 23. The stock pulled back to end the trading session at $442.38, up 0.72% from the previous day’s closing price of $439.22.
MLM has gained 30.5% in the three months period compared with the Zacks Building Products - Concrete and Aggregates industry’s growth of 29.7%, the Zacks Construction sector’s increase of 16.6% and S&P 500 Index’s growth of 9.8%.
The price surge was probably due to the latest statistics released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development revealing promising trends in the new residential construction sector for May 2023. Building permits experienced strong growth, with a 5.2% increase from April, indicating a positive trajectory. Housing starts demonstrated more robust growth, up 21.7% from April levels. Housing completions also displayed positive growth, up 9.5% from the previous month’s levels. These encouraging trends suggest a potentially strong construction market, offering opportunities for investors and homebuyers.
Image Source: Zacks Investment Research
The strong growth in building permits, housing starts and housing completions in May 2023 can be attributed to favorable market conditions and increased demand. These factors combined with government initiatives, provide a solid foundation for the continued expansion of the U.S. construction sector.
Meanwhile, Martin Marietta's public infrastructure market, which represented 35% of its 2022 aggregate shipments, experienced a 5% volume increase from 2021 on the back of solid demand spurred by accelerating federal and state level investment. The company expects infrastructure shipments to surge in the future, driven by healthy state Department of Transportation (DOT) budgets and an expected extension or replacement for the Fixing America’s Surface Transportation (FAST) Act.
Also, Martin Marietta and other concrete and aggregates producers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. The need to rebuild the nation’s deteriorating roads and bridges will likely help MLM.
The company expects a diverse mix of federal projects for road and bridge work, water control, harbors and ports and the power grid to drive growth in 2023. MLM anticipates substantial opportunities in 2023 across federally funded infrastructure projects, industrial manufacturing, energy and power. It expects to deliver another year of profitable growth, a strong cash flow and attractive returns for shareholders.
The new Federal Infrastructure Law along with strong state DOT budgets in the company’s key states of Texas, Colorado, North Carolina, Georgia, Florida and California provide Martin Marietta with a long-awaited runway for multi-year growth in infrastructure demand. Martin Marietta believes that its strategic coast-to-coast footprint is well-positioned for long-term growth, backed by favorable population migration trends, housing shortages in markets and a long-term federal highway bill complemented by healthy DOT budgets in its key states.
Zacks Rank & Other Key Picks
Martin Marietta currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the Zacks Construction sector are:
The Zacks Consensus Estimate for DY’s 2024 sales and EPS indicates a rise of 8.3% and 41%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 55.9% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS indicates a rise of 2% and 8.4%, respectively, from the year-ago period’s levels.
Vulcan Materials Company (VMC - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of VMC have increased 46.9% in the past year.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates a rise of 5.9% and 27.6%, respectively, from the year-ago period’s levels.
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Martin Marietta (MLM) Hits a 52-Week High: What's Driving It?
Martin Marietta Materials, Inc. (MLM - Free Report) touched a new 52-week high of $443.26 on Jun 23. The stock pulled back to end the trading session at $442.38, up 0.72% from the previous day’s closing price of $439.22.
MLM has gained 30.5% in the three months period compared with the Zacks Building Products - Concrete and Aggregates industry’s growth of 29.7%, the Zacks Construction sector’s increase of 16.6% and S&P 500 Index’s growth of 9.8%.
The price surge was probably due to the latest statistics released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development revealing promising trends in the new residential construction sector for May 2023. Building permits experienced strong growth, with a 5.2% increase from April, indicating a positive trajectory. Housing starts demonstrated more robust growth, up 21.7% from April levels. Housing completions also displayed positive growth, up 9.5% from the previous month’s levels. These encouraging trends suggest a potentially strong construction market, offering opportunities for investors and homebuyers.
Image Source: Zacks Investment Research
The strong growth in building permits, housing starts and housing completions in May 2023 can be attributed to favorable market conditions and increased demand. These factors combined with government initiatives, provide a solid foundation for the continued expansion of the U.S. construction sector.
Meanwhile, Martin Marietta's public infrastructure market, which represented 35% of its 2022 aggregate shipments, experienced a 5% volume increase from 2021 on the back of solid demand spurred by accelerating federal and state level investment. The company expects infrastructure shipments to surge in the future, driven by healthy state Department of Transportation (DOT) budgets and an expected extension or replacement for the Fixing America’s Surface Transportation (FAST) Act.
Also, Martin Marietta and other concrete and aggregates producers are expected to benefit from strong global trends in infrastructure modernization, energy transition, national security and a potential super-cycle in global supply-chain investments. The need to rebuild the nation’s deteriorating roads and bridges will likely help MLM.
The company expects a diverse mix of federal projects for road and bridge work, water control, harbors and ports and the power grid to drive growth in 2023. MLM anticipates substantial opportunities in 2023 across federally funded infrastructure projects, industrial manufacturing, energy and power. It expects to deliver another year of profitable growth, a strong cash flow and attractive returns for shareholders.
The new Federal Infrastructure Law along with strong state DOT budgets in the company’s key states of Texas, Colorado, North Carolina, Georgia, Florida and California provide Martin Marietta with a long-awaited runway for multi-year growth in infrastructure demand. Martin Marietta believes that its strategic coast-to-coast footprint is well-positioned for long-term growth, backed by favorable population migration trends, housing shortages in markets and a long-term federal highway bill complemented by healthy DOT budgets in its key states.
Zacks Rank & Other Key Picks
Martin Marietta currently sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks from the Zacks Construction sector are:
Dycom Industries, Inc. (DY - Free Report) sports a Zacks Rank #1. DY has a trailing four-quarter earnings surprise of 153.7%, on average. Shares of DY have gained 7.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for DY’s 2024 sales and EPS indicates a rise of 8.3% and 41%, respectively, from the year-ago period’s levels.
Eagle Materials Inc. (EXP - Free Report) sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.5%, on average. Shares of EXP have increased 55.9% in the past year.
The Zacks Consensus Estimate for EXP’s 2024 sales and EPS indicates a rise of 2% and 8.4%, respectively, from the year-ago period’s levels.
Vulcan Materials Company (VMC - Free Report) flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.1%, on average. Shares of VMC have increased 46.9% in the past year.
The Zacks Consensus Estimate for VMC’s 2023 sales and EPS indicates a rise of 5.9% and 27.6%, respectively, from the year-ago period’s levels.