Published on 20 Jul 2024 on Insider Monkey · via Yahoo Finance

CRH plc (CRH): Why Do Hedge Funds Recommend Buying This Materials Stock Now?

We recently compiled a list of the 10 Best Materials Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where CRH plc (NYSE:CRH) stands against the other materials stocks.

When compared to high growth technology stocks, materials stocks are among the most stable ones on the market. These are often sizeable firms whose performance is tied to the broader economic output. As a result, materials stocks offer investors a chance to ensure that their investments are not affected by the pitfalls of volatility that often accompanies high growth stocks. This volatility is often present in high growth sectors where firms face low barriers to entry, a high level of product diversification from peers which leads to more competition, and even though metals stocks fluctuate with the economy, their sizeable nature and high investment requirements mean that once they've set up shop, they can benefit from somewhat assured demand.