Specialty materials companies can be, well, special. Oftentimes there
is a lot of knowhow and technological capability that goes into the
development and manufacture of specialty materials, and that can lead to
market-beating stocks. "Can" is an important word here, though, as the
performance of companies like Carpenter Technology (CRS), OM Group (OMG), and Rockwood (ROC)
has certainly been erratic and volatile and the label of specialty
material does not guarantee any particular level of sales growth,
margins, or stock market performance.
This brings me to Materion (MTRN).
Like OM Group and Rockwood, Materion's shares have enjoyed a good run
this year, even though many of the company's core markets (including
defense, industrial, and healthcare) aren't enjoying the best of times.
While Materion is still a leader in its traditional beryllium market,
the future of this company is much more about a broad and diversified
approach to specialty materials and alloys for a wide range of markets. I
don't believe that Materion is tremendously undervalued today, but I do
believe it could be worth a small "starter position" or at least a spot
on a watchlist.
Read more here:
Materion's Opportunities In Specialty Materials Well Worth Watching
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