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Here's Why Vulcan Materials (VMC) is a Strong Value Stock

·2 min read

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.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Vulcan Materials (VMC)

Based in Birmingham, AL, Vulcan Materials Company is engaged in the production, distribution and sale of construction aggregates and other construction materials in the U.S. and Mexico. As of Dec 31, 2021, it had 404 active aggregates facilities, 69 asphalt facilities, 173 concrete facilities and 1 calcium facility.

VMC is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 22.5X for the current fiscal year compared to the Building Products - Concrete and Aggregates industry's P/E of 7.7X. Additionally, VMC has a PEG Ratio of 1.3 and a Price/Cash Flow ratio of 16.9X. Value investors should also note VMC's Price/Sales ratio of 3.2X.

A company's earnings performance is important for value investors as well. For fiscal 2022, one analyst revised their earnings estimate higher in the last 60 days for VMC, while the Zacks Consensus Estimate has increased $0.01 to $6.42 per share. VMC also holds an average earnings surprise of 2.8%.

VMC should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.


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