Continued signs of life in the residential housing market helped construction aggregate producer Martin Marietta Materials (MLM 0.86%) 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 (VMC 0.66%), 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.
See more in the following video.
