Have you been listening to the news lately? If so, you might think Cement Stocks are a good investment right now. You’ve probably heard of Biden’s huge infrastructure bill. The $ 4.5 trillion bill proposal includes $ 110 billion to focus on bridges and road repairs and other “major projects.”
It also takes a lot of cement to repair these roads and bridges. Prepare for a boom in demand for it. There is also a housing shortage which could lead to an even greater demand for cement.
Here are some companies that you can invest in to take advantage of the upcoming surge in demand for cement …
Best Cement Stocks
- Eagle Materials (NYSE: EXP)
- CRH Plc (NYSE: CRH)
- James Hardie Industries (NYSE: JHX)
- Loma Negra (NYSE: LOMA)
- Cemex (NYSE: CX)
- Vulcan Materials (NYSE: VMC)
Cement shares to buy
Eagle Materials (NYSE: EXP)
Eagle Materials is headquartered in Dallas, Texas. It produces a variety of building materials. These include cement (of course), concrete, building aggregates, and wall panels. Eagle Materials strives to be the cheapest producer in its industry. He makes sure this is true for every product he makes.
It has a market cap of $ 5.6 billion and an 11% increase in revenue from the second quarter of last year. Its net income and net profit margin are down slightly. But it is safe to assume that they will soon return to high growth.
The stock has been rising steadily since March 2020. It hit its all-time high a few months ago, at around $ 160. It has since backed off and it could be a better buying opportunity.
Leadership in the business also looks pretty good. Each of the leaders has relevant experience in their field.
CRH Plc (NYSE: CRH)
CRH manufactures a wide variety of building materials. It is headquartered in Dublin, Ireland, and was founded in 1970. It is a diverse group of multinational companies that produce building materials.
CRH stock hit a low of around $ 20 in mid-March 2020. The bull has been climbing sharply since then. As of this writing, the prices are not far below $ 50.
Its market capitalization is $ 36 billion and its financial results for the second quarter of 2021 look good. Turnover is up 15%. The net result is up 95%. And, finally, the net profit margin is up 69%.
CRH is the world leader in building materials, according to its website. The company works in 29 countries around the world and had sales of $ 27.6 billion in 2020.
In addition, the company recently launched a share buyback program. The company is buying back up to $ 300 million or 10% of the company’s shares. This is a good sign of the financial health of the business. This helps make it one of the best cement stocks to buy.
James Hardie Industries (NYSE: JHX)
James Hardie is another company located in Dublin, Ireland. This one was founded in 1888! James is the world’s leading distributor and producer of high performance fiber cement. It is also the world leader in plaster fiber construction solutions. It also produces cement siding and backerboards.
The company’s market capitalization is $ 16 billion. Financial data is also excellent for this cement stock. In the last quarter published, turnover is up 35% compared to last year. Net profit amounted to $ 121 million. This is an increase of over 1000% from last year. And the net profit margin soared to 14%.
The stock price has been rising sharply since March 2020. It has gone from $ 10.33 in March 2020 to over $ 40 in recent months. Over the years of James’ stock history, there has been a trend of lows and higher highs.
Loma Negra (NYSE: LOMA)
Loma Negra is a company based in Argentina. It is the largest producer of concrete, cement and lime in the country. It was founded in 1926 and now has a market capitalization of $ 1.6 billion.
Its quarterly financial reports are down from last year, but its P / E ratio is around 7. That means it might be undervalued. Its stock fell in March 2020, but it is slowly recovering.
Zacks classifies Loma Negra as a socket with an A for Value, growth and momentum. Even if they classify it as a retainer, it might pay off to buy. Just make sure your portfolio is balanced and ready for anything.
Cemex (NYSE: CX)
Cemex is a Mexican company that operates in many countries. It produces and distributes cement, ready-mixed concrete and aggregates in more than 50 countries. It was founded in 1906 and now has a market capitalization of over $ 10 billion.
Like many of the Cement stocks on this list, it is experiencing a small downward correction. But I expect it to come back soon with infrastructure spending.
There is a good chance that we are getting materials from our neighbor, Mexico. The stock, like thousands of others, was in a deep decline in April 2020. After that, it started to climb steadily and steadily. Now he sees this fix I mentioned earlier.
Vulcan Materials (NYSE: VMC)
Vulcan Materials was founded in 1909 and is headquartered in Birmingham, Alabama. It has a market capitalization of almost $ 23 billion. Its mission is to provide high quality products to its customers. He also strives to be a responsible steward of the environment. And the last part of its mission is to deliver superior returns to its shareholders.
Vulcan Materials has a dividend yield close to 1%. Yield declined as this cement stock rose higher and higher.
Vulcan is rated by Zacks as a sale and receives a C for Value, growth and momentum. It would be wise to do more research on this company. The government is going to need a lot of cement. And if there isn’t enough, he could grab whatever he can get.
Invest in cement stocks and new opportunities
A version of the infrastructure bill is coming and that should help increase the demand for cement. Therefore, it might be wise to invest in some of the above stocks. The demand for cement and building materials continues to increase.
As always, do your due diligence first. And if you’re interested in other investment opportunities, check out these water stocks and EV charging station stocks. You can also register Profit trends below. This is a free email newsletter packed with tips and tricks from investment experts.
About Vanessa Adelman
Vanessa Adelman graduated with an interdisciplinary degree. She specialized in entrepreneurship, painting, music and cinema. Shortly thereafter, she received an editorial mentorship with Mark Morgan Ford. Then she got her AWAI verification. Now Vanessa is freelance in the direct financial response industry. She has been investing since 2016. In her spare time, she enjoys books on money and wealth. She enjoys being with her boyfriend, hunting, fishing and having outdoor adventures.