This global construction supplier is benefiting from worldwide economic improvement and beat last quarter’s analysts’ estimates by a whopping $0.17 per share.
Martin Marietta Materials (MLM)
from Cabot Market Letter
Martin Marietta Materials (MLM)—Construction materials and aggregates (cement mix, asphalt, etc.) aren’t usually products that attract growth investors, but we think there are a few factors that will help Martin Marietta do very well.
First is the overall industry—there are only a handful of big players in the field, and after a slow recovery in the construction industry for a few years, things are now picking up. Second, it appears Martin is getting huge benefits from its purchase of Texas Industries, bought on the cheap last year when times were tougher. And third, Martin is embarking on a huge share-buyback program, aiming to repurchase about 30% of the company during the next three years.
Throw in a huge-volume breakout on earnings, tight trading since and big earnings estimates (up more than 35% both this year and next), and we think MLM is a good buy around here.
Michael Cintolo, Cabot Market Letter, www.cabot.net, 978-745-5532, March 4, 2015