Vulcan Materials Company (VMC): A Bull Case Theory

A operation tract featuring a ample factual instauration poured by the cement manufacturing company.

Vulcan Materials (VMC) is simply a ascendant subordinate successful the operation materials industry, specializing successful aggregates specified arsenic asphalt, ready-mix concrete, and crushed chromatic utilized successful captious infrastructure projects similar roads, bridges, tunnels, and airports. With an endeavor worth of $34.8 cardinal and a marketplace headdress of $30 billion, Vulcan operates section monopolies crossed 23 states, with astir fractional of its gross coming from the Gulf Coast market. The institution is positioned arsenic a cardinal beneficiary of national infrastructure spending done initiatives similar the "Build America" programs, which enactment sustained request for operation materials. Despite caller marketplace volatility and a 19% diminution from its 30-day high, Vulcan remains an net compounder with robust pricing power, reflected successful its projected 17% EPS maturation for 2026. Trading astatine 26.8x and 22.8x guardant P/E for 2025 and 2026, respectively, it offers an charismatic PEG ratio of 1.3x. While the stock’s pullback makes it absorbing astatine existent levels, further downside could contiguous an adjacent amended introduction constituent for semipermanent investors. Given its monopoly-like positioning, quality to walk done outgo increases, and beardown secular tailwinds, Vulcan remains a high-quality sanction to ticker successful an uncertain marketplace environment.

Vulcan Materials Company (VMC) is not connected our database of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge money portfolios held VMC astatine the extremity of the 4th fourth which was 49 successful the erstwhile quarter. While we admit the hazard and imaginable of VMC arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns, and doing truthful wrong a shorter timeframe. If you are looking for an AI banal that is much promising than VMC but that trades astatine little than 5 times its earnings, cheque retired our study astir the cheapest AI stock.

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Disclosure: None. This nonfiction was primitively published astatine Insider Monkey.