Should You Invest in Vulcan Materials Co. (VMC)?

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. Equity indexes again posted record gains in the third quarter of 2025, with AI-themed stocks leading the market. AI Stocks led around 75% of the market returns in the quarter. In this environment, the fund delivered positive returns in the quarter but lagged behind the Russell 1000 Growth Index benchmark. The fund’s underperformance was driven by an unfavorable market environment and several missteps. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Vulcan Materials Company (NYSE:VMC). Vulcan Materials Company (NYSE:VMC) is a US-based producer and supplier of construction aggregates. The one-month return of Vulcan Materials Company (NYSE:VMC) was 5.76%, and its shares gained 20.50% of their value over the last 52 weeks. On October 14, 2025, Vulcan Materials Company (NYSE:VMC) stock closed at $309.07 per share, with a market capitalization of $40.836 billion.

Macquarie Large Cap Growth Fund stated the following regarding Vulcan Materials Company (NYSE:VMC) in its third quarter 2025 investor letter:

"During the quarter, we made several changes to the portfolio. We initiated a position in Vulcan Materials Company (NYSE:VMC), one of two major aggregates companies in the US. Vulcan holds a dominant position in many regions, allowing for high market share and pricing power, which is exercised through annual price increases. With abundant infrastructure projects in the US, public contracts are accelerating and offsetting weakness in residential construction."

Vulcan Materials Company (NYSE:VMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 59 hedge fund portfolios held Vulcan Materials Company (NYSE:VMC) at the end of the second quarter, up from 56 in the previous quarter.  While we acknowledge the potential of Vulcan Materials Company (NYSE:VMC) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Vulcan Materials Company (NYSE:VMC) and shared the list of stocks to watch as top analyst predicts AI surge will continue despite bubble worries. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.