Cement stocks are gaining traction among investors, with analysts identifying several key players worth considering. With the construction sector showing resilience and growth, particularly in the United States, analysts are optimistic about the future of companies engaged in cement production. The sector has already seen a robust increase of more than 23% this year, outpacing the S&P 500’s 12% growth.
According to analysts at JPMorgan, momentum in the U.S. construction and materials sector is expected to persist into the latter half of 2025 and beyond. They forecast a potential 15% upside for stocks within this sector, with pure U.S. construction stocks anticipated to gain 20% in share price. The bank attributes this optimism to expected increases in construction volumes and the potential for interest rate cuts by the U.S. Federal Reserve, which would lower borrowing costs for homebuyers and developers alike.
Methodology for Selecting Top Cement Stocks
To determine the best cement stocks for investment, a comprehensive analysis was conducted using the Finviz screener to identify companies with significant exposure to cement production. The analysis focused on stocks favored by elite hedge funds as of the second quarter of 2025, assessing their potential upside as of September 11. Stocks were ranked in ascending order based on the number of hedge funds holding stakes in them, reflecting the strategy of replicating the top picks of successful hedge funds to potentially outperform market trends.
Top Cement Stocks to Consider
1. **CEMEX, S.A.B. de C.V. (NYSE:CX)**
– *Stock Upside Potential: 5.99%*
– *Number of Hedge Fund Holders: 18*
On September 3, analysts at BofA Securities maintained a ‘Neutral’ rating on CEMEX, raising its price target to $10 from $8.60. The increase reflects a positive outlook based on the company’s strong performance, including a 53% rise in stock price over the past six months, driven by cost-saving initiatives and a new CEO’s strategic vision.
2. **James Hardie Industries PLC (NYSE:JHX)**
– *Stock Upside Potential: 36.96%*
– *Number of Hedge Fund Holders: 32*
On September 10, James Hardie announced the renewal of its partnership with Green Brick Partners Inc., extending their collaboration in fiber-cement products. This partnership reinforces their commitment to quality in home construction, positioning James Hardie favorably in the competitive market.
3. **Eagle Materials Inc. (NYSE:EXP)**
– *Stock Upside Potential: 1.23%*
– *Number of Hedge Fund Holders: 36*
JPMorgan reaffirmed its confidence in Eagle Materials, raising its price target from $220 to $245. The company reported record revenue of $634.6 million in its first fiscal quarter of 2026, attributed to increased cement sales and contributions from acquisitions.
4. **Amrize Ltd (NYSE:AMRZ)**
– *Stock Upside Potential: 8.29%*
– *Number of Hedge Fund Holders: 48*
Amrize’s management recently declined a tender offer that undervalued its shares, highlighting its strong market position following a successful spin-off from Holcim. The company reported $11.7 billion in revenue for 2024, underscoring its growth trajectory.
5. **Vulcan Materials Company (NYSE:VMC)**
– *Stock Upside Potential: 6.12%*
– *Number of Hedge Fund Holders: 59*
Vulcan Materials received an upgrade from Fitch Ratings, raising its Long-term Issuer Default Rating to BBB+. The company’s strategic acquisition and strong financial performance position it well for future growth.
6. **Martin Marietta Materials, Inc. (NYSE:MLM)**
– *Stock Upside Potential: 5.16%*
– *Number of Hedge Fund Holders: 64*
The introduction of the SOAR 2030 strategy aims to enhance Martin Marietta’s market leadership through operational excellence and strategic acquisitions. The company is well-poised to benefit from increased infrastructure spending.
7. **CRH plc (NYSE:CRH)**
– *Stock Upside Potential: 10.70%*
– *Number of Hedge Fund Holders: 89*
Following a significant acquisition of Eco Material Technologies, CRH is set to expand its portfolio in carbon-neutral cement production. The appointment of Patrick Decker to its board is expected to enhance its strategic direction.
The outlook for cement stocks remains positive, driven by factors such as increased urbanization, infrastructure development, and a trend towards sustainable building practices. Investors seeking to capitalize on these trends may find opportunities within these highlighted companies.
