Here's Why Martin Marietta (MLM) is a Strong Value Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Martin Marietta (MLM)
Based in Raleigh, NC, Martin Marietta Materials, Inc. produces and supplies construction aggregates and other heavy building materials, mainly cement, in the United States. The end uses of the company’s aggregates and cement are infrastructure, private residential and private non-residential construction. Railroad, agricultural, utility and environmental industries also use these products. The company supplies aggregates (crushed stone, sand and gravel) through its network of approximately 350 quarries, mines and distribution yards in 28 states, Canada and the Bahamas.
MLM is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 26.6X for the current fiscal year compared to the Building Products - Concrete and Aggregates industry's P/E of 12.8X. Additionally, MLM has a PEG Ratio of 1.2 and a Price/Cash Flow ratio of 24.2X. Value investors should also note MLM's Price/Sales ratio of 4.6X.
Many value investors pay close attention to a company's earnings as well. For MLM, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.98 to $18.44 per share for 2023. Per share MLM boasts an average earnings surprise of 37.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding MLM to their portfolios.
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Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
