Positive Signs for Construction Aggregate Companies?
Continued signs of life in the residential housing market helped construction aggregate producer Martin Marietta Materials (NYS: MLM) achieve growth on both its top and bottom lines in the third quarter of this year. Combine this macro strengthening with internal productivity gains, and you're left with a 21% sales increase over last year.
Moving forward, continued strength in the residential housing market should continue to pull Martin Marietta higher. Both new-home starts and residential permits have finally reached levels not seen since June 2008. This news is especially positive for Martin Marietta and its peers, such as Texas Industries (NYS: TXI) and Vulcan Materials (NYS: VMC) , because non-residential construction usually follows residential spending's lead. If this trend plays out, investors in this sector could be witnessing the beginning of a nice move north of current share prices.
See more in the following video.
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The article Positive Signs for Construction Aggregate Companies? originally appeared on Fool.com.Joel South, Taylor Muckerman, and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.