Martin Marietta Materials, Inc. (NYSE:MLM) received a lot of attention from a substantial price increase on the NYSE over the last few months. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Martin Marietta Materials’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Martin Marietta Materials

What Is Martin Marietta Materials Worth?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 7.25% above our intrinsic value, which means if you buy Martin Marietta Materials today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $577.54, there’s only an insignificant downside when the price falls to its real value. Furthermore, Martin Marietta Materials’s low beta implies that the stock is less volatile than the wider market.

What kind of growth will Martin Marietta Materials generate?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 29% over the next couple of years, the future seems bright for Martin Marietta Materials. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? MLM’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on MLM, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you'd like to know more about Martin Marietta Materials as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Martin Marietta Materials you should be aware of.

If you are no longer interested in Martin Marietta Materials, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.