Hennessy Equity and Income Fund on Martin Marietta Materials, Inc.
Thesis
Martin Marietta was a relative detractor because market expectations had become elevated rather than because the underlying business deteriorated. Infrastructure spending and nonresidential construction remain supported by federal IIJA funding and data-center development. Hennessy also expects recent acquisitions to strengthen pricing, margins and cash flow, supporting long-term earnings compounding.
“We remain confident in Martin Marietta’s ability to compound earnings over the long term.”
Key risks
- Elevated investor expectations can pressure the shares even when fundamentals remain intact.