Vulcan Materials Offers Long-Term Upside Despite Being Pricey

Summary

  • Vulcan Materials Company is a "boring" but interesting company that provides aggregates and construction materials.
  • The company has achieved attractive growth in recent years and operates in a highly fragmented industry with the potential for continued growth through acquisitions.
  • Despite concerns about lower tons shipped in the first quarter of 2023, management is optimistic about the future and forecasts solid profits and cash flows for the year.
  • Shares are pricey, but the catalysts propelling it should justify this lofty price.
  • Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More »

Aggregates of bricks for making concrete. Crushed red brick as a texture background of natural materials

MD SHAFIQUL ISLAM /iStock via Getty Images

Perhaps I'm an oddball, but I have always found some of the most "boring" types of companies out there to be the most interesting to analyze and, when possible from a valuation perspective, purchase. Unlike the "exciting" businesses that permeate

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This article was written by

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Daniel is an avid and active professional investor.

He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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