Are Wall Street Analysts Predicting Vulcan Materials Stock Will Climb or Sink?

Core Insights - Vulcan Materials Company (VMC) is a leading producer of construction aggregates, with a market capitalization of $37 billion, focusing on aggregates, asphalt mix, concrete, and cement [1] Performance Overview - VMC shares have underperformed the broader market, gaining only 1.1% over the past year compared to a 12.3% increase in the S&P 500 Index [2] - Year-to-date, VMC stock is up 9.6%, lagging behind the S&P 500's 12.5% rise [2] - Compared to the Invesco Building & Construction ETF, which gained 9.1% over the past year and 20% year-to-date, VMC's performance is notably weaker [3] Financial Results - In Q3, VMC reported revenues of $2.29 billion, a 14.4% increase year-over-year, with adjusted EBITDA rising 26.5% to approximately $735 million [4] - Aggregates shipments increased by around 12% to 64.7 million tons, driven by strong demand from public infrastructure projects, alongside improved pricing and reduced unit cash costs [4] - The company reaffirmed its full-year guidance, projecting adjusted EBITDA between $2.35 billion and $2.45 billion [4] Earnings Expectations - Analysts forecast VMC's EPS to grow by 11.8% to $8.42 on a diluted basis for the current fiscal year ending in December [5] - VMC has a mixed earnings surprise history, beating consensus estimates in three of the last four quarters [5] - Among 22 analysts covering VMC, the consensus rating is a "Strong Buy," with 15 "Strong Buy" ratings, one "Moderate Buy," and six "Holds" [5] Analyst Insights - DA Davidson analyst Brent Thielman raised the price target for VMC to $330 from $315, maintaining a "Buy" rating after the Q3 earnings beat [7] - Thielman noted that while the surge in Q3 volumes may not be sustainable due to current market conditions, earnings growth into FY26 is still seen as achievable, supported by disciplined cost management and incremental pricing for aggregates [7]