Bull’s Eye Report: Vulcan Materials (VMC)

VMC tends to pull back for brief periods of time before skyrocketing to new highs

   

At StateoftheMarkets.com, 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.

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Company Symbol Industry Stock Rating YTD% Gain S.T.
Stop Loss
Vulcan Materials VMC Constuction Materials 8.9 +4.08% $53.39

Why We Like The Stock:

Vulcan Materials (NYSE:VMC) 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 sub-industry that has been red-hot for some time – Construction Materials. Along with other Construction Materials stocks like Martin Marietta Materials (NYSE:MLM), Texas Industries (NYSE:TXI), and Eagle Materials (NYSE:EXP), VMC has been trending higher in spectacular fashion since last summer. The stock tends to pull back for brief periods of time before skyrocketing to new highs, so every pullback should be viewed as an entry opportunity. Currently the stock is at around $55, which is a great point to buy. VMC was north of $58.70 just a few weeks ago in late January, so the immediate upside potential is pretty high. With some solid support right around $54, VMC is a no brainer – high upside, low downside, positive long-term trend, currently on a pull-back. Thus, we think VMC is Friday’s most compelling buy.

We Would Be Buyers:

At the current price (~$55), or on a pullback to $54.

Company Profile:

Vulcan Materials Company is a producer of construction aggregates, primarily crushed stone, sand, and gravel. Vulcan has 323 active aggregates facilities. The company also is a producer of asphalt mix and ready-mixed concrete, as well as a producer of cement in Florida. The company operates in four segments: aggregates, concrete, asphalt mix and cement. During the year ended December 31, 2011, the company acquired 10 ready-mixed concrete facilities.

Stock Rating:  8.9

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.

Vulcan Materials – Last Three Months

VMC 1 300x168 Bulls Eye Report: Vulcan Materials (VMC)
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Vulcan Materials – Last 12 Months

VMC 2 300x168 Bulls Eye Report: Vulcan Materials (VMC)
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Vulcan Materials – Last Five Years

VMC 3 300x168 Bulls Eye Report: Vulcan Materials (VMC)
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At the time of publication the editor and affiliated companies own the following positions: None

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


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