Why Vulcan Materials (VMC) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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, 2023, it had 404 active aggregates facilities, 71 asphalt facilities, 142 concrete facilities and 1 calcium facility.
VMC sits at a Zacks Rank #2 (Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Building Products - Concrete and Aggregates industry's P/E of 10.6X, shares of Vulcan Materials are trading at a forward P/E of 28.2X. VMC also has a PEG Ratio of 1.2, a Price/Cash Flow ratio of 19.2X, and a Price/Sales ratio of 3.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Five analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.15 to $6.88 per share. VMC has an average earnings surprise of 13.6%.
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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Vulcan Materials Company (VMC) : Free Stock Analysis Report
