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 dollar can affect factors such as Gross Profits. Many Materials companies return capital to shareholders in the form of dividends. High yields may be attractive, but investors also need to look closely at financial strength factors such as dividend coverage and debt levels. Potential sell signals for stocks in the Materials sector can be an impending recession, a supply glut for a specific commodity, or a weakened balance sheet that threatens the dividend payout. At this stage of the market and economic cycle, our favored industries within the Materials sector include: Specialty Chemicals, Steel, and Industrial Gases.

The major indices are solidly higher at midday on Friday, as investors are focused on headlines ranging from a possible peace deal in Iran, to inflation and interest-rate forecasts, to consumer sentiment, and, of course, to the SpaceX IPO. The SPCX shares started trading around noon and as of this writing are up 29% from the offering price of $150. All of the that is feeding the volatility machine, with the VIX Volatility index currently at 19 after being as high as 23 and as low as 17 earlier this week. Crude oil has also had a busy week, with the current price per barrel around $86 compared to a high around $95 and a low around $83 earlier in the week. And as a final nod to these busy days, rotation in and out of technology and AI names has been fast and furious this week. Using Broadcom as a proxy, we note that the AVGO stock, currently at about $381, has been as high as $480 and as low as $371 in recent days.

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2024, Vulcan sold 219.9 million tons of aggregates, 13.6 million tons of asphalt mix, and 3.6 million cubic yards of ready-mix. As of Dec. 31, 2024, the company had 16.5 billion tons of aggregate reserves.

Vulcan Materials is the United States' largest producer of construction aggregates (crushed stone, sand, and gravel). Its largest markets include Texas, California, Virginia, Tennessee, Georgia, Florida, North Carolina, and Alabama. In 2024, Vulcan sold 219.9 million tons of aggregates, 13.6 million tons of asphalt mix, and 3.6 million cubic yards of ready-mix. As of Dec. 31, 2024, the company had 16.5 billion tons of aggregate reserves.