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Concrete and construction aggregate makers are enjoying continued demand fueled by projects to repair roads, bridges and expand public transportation. The group moved up to No. 30 among IBD’s 197 industry groups in Thursday’s issue, up sharply from No. 115 six weeks ago. Five building-related groups made the top 30 groups. And the overall building sector has been strong, coming in at No. 4 of the 33 sectors tracked by IBD. U.S. Concrete ( USCR ) has racked up a 24% year-to-date gain, well ahead of the S&P 500’s 2% advance. Shares are extended 10% from a 59.50 cup-with-handle buy point initially cleared March 21 in heavy trade. The Texas-based ready-mix concrete producer earns top-notch ratings in the group: 99 Composite, 99 Earnings Per Share and 97 Relative Strength. A B+ Accumulation/Distribution Rating and 1.6 up-down volume ratio suggest recent institutional demand for shares. The company has notched double-digit or better profit and sales growth the past six quarters. Analysts expect Q1 earnings to be flat at 22 cents a share on a 29% revenue increase to $221.14 million, when U.S. Concrete reports May 5 before the open. Vulcan Materials ( VMC ), up 14% year to date, is still in buy range from a 106.93 buy point it first eclipsed on April 1. Volume was about average that day, instead of the 40% ideal minimum on a breakout. But the stock has held most of its gains from the entry. It’s currently 2% above the buy point. The Alabama-based company provides ready-mix concrete as well as rock, gravel, sand and asphalt mix to the construction and paving industries. It also earns a 99 Composite Rating. Other ratings include a 78 EPS, 92 RS and B+ Accumulation/Distribution. When Vulcan reports Q1 results May 3 before the open, analysts will be looking for a per-share profit of 6 cents on $711.03 million in sales. That would mark a reversal from a 16-cent loss and a 13% revenue bump from the same year-ago period. Martin Marietta Materials ( MLM ) has rallied 25% so far this year. The stock previously cleared a 157.66 cup-with handle buy point March 31 in slightly higher-than-usual volume. It’s since formed a higher handle and remains in buy range from a 168.33 entry, which it climbed past last week in low turnover. The Raleigh, N.C.-based company, which has a 97 Composite, 93 EPS and 92 RS, reports May 5 before the open. Analysts expect 35 cents a share on $663.73 million in revenue. Martin’s three-year earnings growth rate is 33%, with estimates for a 48% jump this year and 35% the next. Like its peers, Martin Marietta has a positive Accumulation/Distribution Rating and up-down volume ratio. Highly rated funds owning shares in Q1 included CGM Focus ( CGMFX ) and Fidelity Contrafund ( FCNTX ). Scalper1 News
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