Monday, January 9, 2017

Vulcan Materials Company [VMC]

Vulcan Materials Company   [VMC]

     Vulcan Materials Company produces and sells construction materials, asphalt mix, and ready-mixed concrete to companies primarily in the United States. Those segments account for three of the four company segments with the fourth being calcium. These different parts of the company are used in the public sector to supply for the construction of highways, airports, and government buildings.

     After doing some research and reading around it is evident that the airports in the United States need to be redone. In my own experience, most of them suck and are old. I think here they're referring to the concrete runways, but those are old and sucky, too. Much of what Vulcan does are public projects, as mentioned above, like airports. With Trump coming into office and the belief that infrastructure spending will greatly increase, it is thought that Vulcan will provide many of the supplies used to update the public areas. 

     Vulcan is 89.60% institutionally owned has seen an uptick recently as they head into the 4th quarter. The stock saw a huge jump up after the election results and since has seen a pullback. As per usual. It's likely that this stock, as well as the others I'll talk about will probably continue to level out since most are considered overbought. Below are the daily and weekly charts from

     The daily chart appears to be bearish. The price dipped below the 50 day moving averages and all other indicators are on a downtrend. The breakout below the moving average was on pretty average volume so it may bounce up a bit, but overall the price has been decreasing since November 10th. 

     While this isn't the worst, it is similar to the daily chart in that it is bearish. The stochastic, MACD, and RSI are coming down from high points. As the weeks continue and the 50 day moving averages continue to rise like the stock has, the candle sticks may use those as support as they did in September and October of 2016. That seems like the most likely to happen based on what the short term chart looks like. I'd keep watching them in unison and consider buying it once the moving averages and stock price converge. 

     The most recent recommendation as seen on finviz was a downgrade from buy to neutral by Bank of America/Merrill. The analyst recommendation averages a total of 2.1. Remember 1 is strong buy and 5 is sell. They beat earnings in Q1, then missed both Q2 and Q3. Vulcan Materials Company is set to release Q4 in the first week of February. Yahoo! Finance has the EPS estimated at $0.84.

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