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 $36.6 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.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and MLM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the building materials industry. MLM cements its aggregates industry leadership through a robust presence in strategic markets. Its diversified portfolio, featuring cement and magnesia specialties, buffers against market fluctuations.
Despite its notable strength, MLM slipped 14.5% from its 52-week high of $710.97, achieved on Feb. 10. Over the past three months, MLM stock has declined 2.6%, underperforming the Dow Jones Industrials Average’s ($DOWI) marginal dip during the same time frame.
Shares of MLM dipped 2.4% on a YTD basis, underperforming DOWI’s YTD marginal losses. However, in the longer term, the stock climbed 29.8% over the past 52 weeks, outperforming DOWI’s 13.8% returns over the last year.
To confirm the bearish trend, MLM has been trading below its 50-day and 200-day moving averages recently.
On Feb. 11, MLM shares closed down by 6.6% after reporting its Q4 results. Its EPS of $3.85 fell short of Wall Street expectations of $4.68. The company’s revenue was $1.5 billion, missing Wall Street forecasts of $1.6 billion. MLM expects full-year revenue in the range of $6.4 billion to $6.8 billion.
In the competitive arena of building materials, Vulcan Materials Company (VMC) has lagged behind MLM, with a 20.8% uptick over the past 52 weeks and 4.9% losses on a YTD basis.
Wall Street analysts are reasonably bullish on MLM’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $697.80 suggests a potential upside of 14.9% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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