Argus

•

Jun 12, 2026

Symbols

Sector(s)

Basic Materials

Rating

Earnings Estimate

Current Price

$286.50

Price Target

Summary

Vulcan Materials is the nation's largest supplier of construction aggregates, and a major producer of asphalt mix and ready-mixed concrete. It is headquartered in Birmingham, Alabama. The company operates primarily in the U.S., with operations in 22 states, as well as in Mexico, Columbia, Canada, and Honduras. Founded in 1909, Vulcan Materials has approximately 11,000 employees. VMC shares are a component of the S&P 500.

MATERIALS

Our rating on the Materials sector is Over-Weight, increased from Market-Weight. Despite the energy price shock rippling through the global economy, demand for commodities remains solid, and commodity-producing nations have some of the strongest stock markets worldwide. Additionally, U.S. dollar weakness is positive for commodity prices, given that most commodities are priced in dollars and given the inverse relationship between commodity prices and the direction of the dollar.

The sector receives above-average marks on our six-part 'blind' sector rating criteria, which includes growth momentum, valuation, financial strength, and analyst conviction, among other factors.

The sector has outperformed the market year to date with a gain of 11.2% as of the end of May. The sector underperformed in 2025, with a gain of 8.4%, compared to a gain of 16.4% for the S&P 500. The beta for the sector is 1.0.

Over the past five years, the sector's weighting has ranged from 1% to 4%. The sector's P/E ratio on projected 2027 EPS was 21, above the market multiple. The yield of 1.3% was above the market average. The sector's smoothed earnings growth rate of 4% was below the market average.

The Materials sector is primarily a cyclical, value-oriented sector. The macroeconomic factors that may affect the performance of stocks in the Materials sector include Tariffs, Input Costs, Interest Rates, and Trade Policy, among others. Trends in the d

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