Stock of the Day

July 10, 2020

Martin Marietta Materials (MLM)

$549.12
-$0.92 (-0.2%)
Market Cap: $33.13B

About Martin Marietta Materials

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

Martin Marietta Materials Bull Case

Here are some ways that investors could benefit from investing in Martin Marietta Materials, Inc.:

  • The current stock price is around $541.63, which may present a buying opportunity for investors looking for value in the construction materials sector.
  • Analysts have a consensus rating of "Moderate Buy" for Martin Marietta Materials, Inc., indicating positive sentiment and potential for price appreciation.
  • The company has a solid dividend payout ratio of 18.20%, suggesting a commitment to returning value to shareholders while maintaining financial stability.
  • Recent upgrades from several brokerages, including a "strong-buy" rating from Seaport Res Ptn, reflect growing confidence in the company's future performance.
  • Institutional investors own a significant 95.04% of the company's stock, which often indicates strong market confidence and stability.

Martin Marietta Materials Bear Case

Investors should be bearish about investing in Martin Marietta Materials, Inc. for these reasons:

  • Recent downgrades from JPMorgan Chase & Co. and other analysts suggest that some market participants may have concerns about the company's near-term performance.
  • The stock has experienced fluctuations, with a recent trading volume of 129,104 shares, which is below its average volume, indicating potential volatility.
  • Target price reductions from various analysts, including a decrease from $640.00 to $560.00, may signal a lack of confidence in achieving previous growth expectations.
  • Market conditions in the construction sector can be unpredictable, which may impact the company's revenue and profitability.
  • With a relatively low dividend yield of 0.56%, income-focused investors may find the returns less attractive compared to other investment opportunities.
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