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Bull’s Eye Report: Martin Marietta Materials (MLM)

Take advantage of the pullback in MLM


At, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company Symbol Industry Stock Rating YTD% Gain S.T. Stop Loss
Martin Marietta Materials Inc MLM Construction Materials 7.1 +9.92% $104.75

Why We Like The Stock:

Martin Marietta Materials (MLM) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in a positively trending sub-industry. Construction materials stocks have been flashing positive technical set-ups for some time, as stocks like Texas Industries (TXI), Eagle Materials (EXP), and MLM all share a similar chart pattern. However, this is not a bad thing, as the set-up is quite good. MLM has recently pulled back from mid-May highs of $113.65, currently sitting at $106.77 just a tad below its short term moving averages. The stock has been in an intermediate-term uptrend since June of 2012, and despite the recent consolidation phase, looks poised to make a quick run back up to mid-May highs with a little push here. We would be buyers at current prices, though we’d be wary of making this trade at an entry below $104.75.

We Would Be Buyers:

At the current price (~$107.00).

Company Profile:

Martin Marietta Materials, Inc. is the producer of aggregates products (crushed stone, sand, and gravel) for the construction industry, including infrastructure, nonresidential, residential, railroad ballast, agricultural, and chemical grade stone used in environmental applications. The Company operates in four business segments: the Mideast Group, Southeast Group, and West Group and the Specialty Products segment. The Specialty Products segment includes the magnesia-based chemicals and dolomitic lime businesses. The Company’s aggregates business also includes asphalt products, ready mixed concrete, and road paving operations. The Company also has a Specialty Products segment that manufactures and markets magnesia-based chemical products used in industrial, agricultural, and environmental applications, and dolomitic lime sold primarily to customers in the steel industry.

Stock Rating: 7.1

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Martin Marietta Materials – Last Three Months


Martin Marietta Materials – Last 12 Months


Martin Marietta Materials – Last Five Years

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At the time of publication the editor and affiliated companies own the following positions: MLM

Note: Positions may be bought or sold while this publication is in circulation without notice.

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