Have you been listening at all to the news lately? If yes, you might be thinking that cement stocks are a good investment right now. You’ve probably heard something about Biden’s huge infrastructure bill. The $4.5 trillion bill proposal includes a $110 billion to focus on bridge and road repair and other “major projects.”
It takes a lot of cement to get those roads and bridges repaired, too. Prepare for a boom in demand for it. There’s a home shortage as well which could lead to even more cement demand.
Here are a handful of companies you can invest in to take advantage of the coming rise 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 Stocks to Buy
Eagle Materials (NYSE: EXP)
Eagle Materials has headquarters in Dallas, Texas. It produces a variety of building materials. These include cement (of course), concrete, construction aggregate and wall board. Eagle Materials strives to be the lowest-cost producer in its industry. It makes sure this is true for each product it makes.
It has a market cap of $5.6 billion, and an 11% increase in revenue compared to last year’s Q2. Its net income and net profit margin are down slightly. But it is smart to assume they’ll be back up high in growth soon.
The stock’s been growing higher and higher ever since March of 2020. It hit its all-time high a few months back at around $160. Since, it’s pulled back and this might be a better buying opportunity.
Leadership in the company also looks pretty good. Each of the leaders has experience relevant to his or her field.
CRH Plc (NYSE: CRH)
CRH makes a wide variety of construction materials. It’s headquartered in Dublin, Ireland, and was founded in 1970. It’s a diversified group of multinational businesses that produce building materials.
CRH’s stock hit low around $20 in mid-March of 2020. The bull has been climbing steeply since then. At the time of writing this, prices are not far below $50.
Its market cap is at $36 billion, and its Q2 2021 financials are looking good. Revenue is up 15%. Net income is up by 95%. And, finally, net profit margin is up by 69%.
CRH is the world’s leading building materials business, according to its website. The company works in 29 countries around the world and produced $27.6 billion in revenue in 2020.
Also, the company recently started a share buyback program. The company is repurchasing up to $300 million or 10% of the business’s shares. This is a good sign of financial health in the company. It 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 #1 marketer and producer of high-performance fiber cement. It’s also the world’s #1 for fiber gypsum building solutions. It also produces cement siding and backer board.
The company’s market cap is at $16 billion. The financials look great for this cement stock as well. In the last reported quarter, revenue is up 35% compared to last year. Net income is up to $121 million. That’s over a 1,000% increase from last year. And net profit margin has climbed to 14%.
The stock price is on a sharp rise since March of 2020. It went from $10.33 in March 2020, to above $40 in the past few months. Over the years of James stock history, there has been a pattern of higher lows and higher highs.
Loma Negra (NYSE: LOMA)
Loma Negra is a company based out of Argentina. It is the country’s largest producer of concrete, cement and lime. It was founded in 1926, and now has a market cap of $1.6 billion.
Its quarterly financial reports are down from last year, but its P/E ratio is about 7. This means it might be undervalued. Its stock dropped low back in March 2020, but it has been slowly coming back up.
Zacks ranks Loma Negra as a hold with an A for Value, Growth, and Momentum. Even though they rank it as a hold, it might pay off to buy. Just make sure your portfolio’s balanced and prepared for anything.
Cemex (NYSE: CX)
Cemex is a Mexican company that does business in many countries. It produces and distributes, cement, ready-mix concrete and aggregates in over 50 countries. It was founded in 1906, and now has a market cap of over $10 billion.
Like many of the cement stocks on this list, it’s going through a small correction downwards. But I expect this to come back up soon with the infrastructure spending.
There’s a very good chance we will be getting materials from our neighbor, Mexico. The stock, like thousands of others, was in a deep dip in April of 2020. After that, it started climbing steep and steady. Now, it’s seeing that correction I mentioned earlier.
Vulcan Materials (NYSE: VMC)
Vulcan Materials was founded in 1909, and has headquarters in Birmingham, Alabama. It has a market cap of close to $23 billion. Its mission is to provide high quality products to its customers. It also strives to be a responsible steward to the environment. And the last part of its mission is to provide superior returns for its shareholders.
Vulcan Materials has a dividend yield not far below 1%. The yield has come down as this cement stock has been climbing higher and higher.
Vulcan is rated by Zacks as a sell, and given a C for Value, Growth and Momentum. It would be smart to do some more research into this company. The government is going to need a lot of cement. And if there isn’t enough, it might be grabbing whatever it can get.
Investing in Cement Stocks and New Opportunities
Some version of the infrastructure bill is going to happen and that should help push cement demand higher. As a result, it might be smart to invest in some of the cement stocks above. Demand for cement and building materials is going up and up.
As always, do your due diligence first. And if you’re interested in more investing opportunities, check out these water stocks and EV charging station stocks. You can also sign up for Profit Trends below. It’s a free e-letter that’s packed with tips and tricks from investing experts.