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Construction stocks soar on strong Martin Marietta earnings, Trump infrastructure hopes

  • Martin Marietta Materials and Flowserve shares rise after earnings top Wall Street.
  • Transportation Secretary Elaine Chao said this week details on the infrastructure plan will come "pretty soon."
Contractors work on the Hudson Yards Shed in New York.
Michael Nagle | Bloomberg | Getty Images

Construction stocks soared on Tuesday after several companies reported better-than-expected earnings and investors bet demand will get a big lift from President Trump's infrastructure plan later this year.

Shares of Martin Marietta Materials, a maker of concrete and cement, closed up more than 7 percent, while Vulcan Materials closed up more than 4 percent. Valve maker Flowserve gained as much as 2 percent during Tuesday's trade, closing relatively flat.

Martin Marietta blew Street estimates out of the water, reporting first-quarter earnings of 67 cents per share on revenue of $791.7 million. According to FactSet, analysts expected earnings of 39 cents per share on revenue of $724.2 million.

The CEO of Martin Marietta, Ward Nye, was optimistic in a press release, calling the construction industry "vibrant."

"We remain highly confident that we are in a multi-year construction recovery and that Martin Marietta is particularly well positioned to benefit from the expected increased demand," Nye added.

The surge comes after Transportation Secretary Elaine Chao said this week that details on President Donald Trump's trillion-dollar plan for infrastructure will be disclosed "pretty soon."

Flowserve reported first-quarter earnings of 25 cents per share on revenue of $863.6 million on Monday. The Texas-based company beat analyst expectations, which estimated earnings at 18 cents per share on revenue of $813.3 million, according to FactSet.