Topic: How To Invest

Q: I’d like your recommendation on Vulcan Materials. Thank you. I enjoy the Inner Circle.

Article Excerpt

A: Vulcan Materials Co., $268.65, symbol VMC on New York (Shares outstanding: 132.3 million; Market cap: $35.7 billion; www.vulcanmaterials.com), operates mostly in the U.S. and is the nation’s largest supplier of construction aggregates. These are raw materials extracted from pits and quarries, and primarily include crushed stone, sand and gravel. The company is also a major producer of products that use aggregates, such as asphalt mix and ready-mixed concrete. Vulcan has over 397 aggregates facilities, 66 asphalt facilities and 63 concrete facilities. Most are in the U.S., except for the company’s quarries and marine terminals on Vancouver Island in B.C., Honduras and Mexico. The company’s aggregates are used to build and repair infrastructure such as roads, bridges, waterworks and ports. They are also used to construct residential and non-residential buildings, such as manufacturing facilities, office buildings, schools, hospitals and churches. Vulcan reported revenue of $4.93 billion in 2019. Revenue then fell 1.5% to $4.86 billion in 2020 due to COVID-19 disruptions to the…