Continued signs of life in the residential housing market helped construction aggregate producer Martin Marietta Materials (NYSE:MLM) achieve growth on both its top and bottom lines in the third quarter of this year. Combine this macro strengthening with internal productivity gains, and you're left with a 21% sales increase over last year.
Moving forward, continued strength in the residential housing market should continue to pull Martin Marietta higher. Both new-home starts and residential permits have finally reached levels not seen since June 2008. This news is especially positive for Martin Marietta and its peers, such as Texas Industries (NYSE:TXI) and Vulcan Materials (NYSE:VMC), because non-residential construction usually follows residential spending's lead. If this trend plays out, investors in this sector could be witnessing the beginning of a nice move north of current share prices.
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