Loma Negra is smaller than the others on this list and focuses primarily on the market in its native Argentina and neighboring countries. The company produces cement, aggregates, lime, and ready-made concrete mixtures for construction companies and industrial users.
Loma is more of a pure-play investment in emerging markets, but demand from South America should significantly increase in the years to come as local economies continue to develop.
How to buy cement stocks
Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one.
Search for the stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in cement stocks
Investing in cement stocks is often viewed as a bedrock strategy for long-term portfolios. Because cement is the primary ingredient in concrete, the industry acts as a direct proxy for global economic development.
Some factors to consider include:
- Sustained infrastructure demand: Governments worldwide are currently engaged in massive infrastructure renewals. In the U.S., the Infrastructure Investment and Jobs Act continues to fuel projects through 2026.
- High barriers to entry: The cement industry has local "moats" protecting established players. New facilities require massive upfront investment and specialized permits, and because of its weight, transporting cement over long distances is inefficient.
- Urban renewal and multifamily living: Apartment buildings and other land-efficient multiunit dwellings use more cement than single-family homes, which are typically built of wood or brick.
- Hedge against inflation: Because cement companies can often pass along rising input costs, such as energy and labor, to customers, it is often seen as a hedge against inflation. Since cement is an essential but relatively small portion of a total construction project, builders are usually "price takers."
- Environmental regulations: The regulatory environment should always be considered when investing in cement stocks. This is an ever-evolving situation, and regulations can be enacted that create additional hurdles for manufacturers, hurting profitability.
- Construction is a cyclical industry: Investors should pay attention to companies' financial health to ensure they have the wherewithal to survive a downturn.