Trump Stocks to Watch: Vulcan Materials (VMC)
YTD Gains: -4.4%
52-Week Performance: 17.1%
Price Target: $137.73
Despite its name, Vulcan Materials Company (NYSE:VMC) is not related to “Star Trek’s” Mr. Spock. In fact, the producer of construction aggregates (crushed stone, sand and gravel), asphalt and ready-mix concrete may be among the least sexy companies in the S&P 500. However, like JEC and CX, VMC is poised to benefit from Trump’s infrastructure plan.
CEO J. Thomas Hill is bubbling with optimism and is on the hunt for acquisitions. “Our operating disciplines will enable us to grow margins faster than pricing, and we have the financial strength and flexibility to grow, while at the same time returning capital to shareholders,” he said during the recent earnings conference call.
But shares have been under pressure after VMC’s disappointing quarterly results and investors’ expectations that the federal government’s infrastructure spending boom may not start until 2018 — though Hill noted that states are ratcheting up their spending on transportation and other projects which have been neglected.
Verdict: VMC seems like a better value than CX or JEC.
As of this writing, Jonathan Berr did not hold a position in any of the aforementioned securities.