Martin Marietta (MLM) Dips More Than Broader Markets: What You Should Know
Martin Marietta (MLM) closed at $359.10 in the latest trading session, marking a -0.78% move from the prior day. This change lagged the S&P 500's daily loss of 0.18%.
Heading into today, shares of the seller of granite, limestone, sand and gravel had lost 4.04% over the past month, outpacing the Construction sector's loss of 4.29% and lagging the S&P 500's gain of 0.04% in that time.
Investors will be hoping for strength from MLM as it approaches its next earnings release. On that day, MLM is projected to report earnings of $4.03 per share, which would represent year-over-year growth of 15.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.32 billion, up 10.7% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.64 per share and revenue of $4.89 billion, which would represent changes of +9.53% and +10.36%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MLM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.8% higher within the past month. MLM currently has a Zacks Rank of #2 (Buy).
Digging into valuation, MLM currently has a Forward P/E ratio of 28.64. This valuation marks a premium compared to its industry's average Forward P/E of 16.89.
Also, we should mention that MLM has a PEG ratio of 2.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Building Products - Concrete and Aggregates stocks are, on average, holding a PEG ratio of 1.94 based on yesterday's closing prices.
The Building Products - Concrete and Aggregates industry is part of the Construction sector. This group has a Zacks Industry Rank of 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Click to get this free report
Martin Marietta Materials, Inc. (MLM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.