A report from the American Institute of Architects highlighted the non-residential construction sector’s staggering expansion of approximately 20% in 2023, demonstrating remarkable resilience despite challenging credit conditions. The robust performance of the sector offers compelling reasons for investors to explore construction stocks in early February.
Vulcan Materials (VMC)
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Vulcan Materials (NYSE:VMC) presents itself as an increasingly robust stock in 2024, building on its current strength. Serving as the largest U.S. aggregates producer, Vulcan Materials generates steady investment opportunities. Analysts have even enhanced their outlook on the company three times in the past 60 days, signaling potential positive surprises. Anticipated 35% earnings growth in 2024 underscores its appeal, bolstered by persistent strong construction activity demanding its aggregates, including crushed rock, gravel, and asphalt.
Vulcan Materials, despite offering a modest dividend and minimal income, maintains a low beta, indicating limited volatility, rendering it a secure and predictable venture. Positioned as one of the most promising firms in a sector continuously clamoring for its products, it stands as an attractive investment prospect.
United Rentals (URI)
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United Rentals (NYSE:URI) stock held substantial appeal between the start of the year and Jan. 24, emerging as a prominent player amid the construction boom. The company marked a record year and concluded with a successful fourth quarter, propelling a substantial surge in share value upon releasing its earnings on that date.
In 2023, United Rentals executed a $1 billion shares buyback and is committed to repurchasing $1.5 billion in 2024. Additionally, the company augmented its dividend expenditure by 10% in 2024. As it endeavors to decrease its debt-to-equity ratio within the industry, United Rentals aims to streamline operations for improved shareholder satisfaction and sustained fiscal soundness.
Deere (DE)
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Contemplating an investment in Deere (NYSE:DE) stock emphasizes the company’s full embrace of the digital era, evident from the homepage’s digital-centric elements. Recognizing the vast potential for automation and artificial intelligence to revolutionize agricultural practices, Deere’s dedication to integrating advanced technology into their tractors signifies a forward-thinking approach.
Notable progress includes Deere’s collaboration with Elon Musk’s SpaceX, employing the latter’s satellites to ensure consistent internet connectivity in remote locations worldwide. This partnership promises enhanced agricultural precision and heightened automation prospects, fostering a compelling narrative of technological advancement.
On the date of publication, Alex Sirois did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
