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The Bear of the Day is an article that is supposed to highlight why a stock is a Zacks Rank #5 (Strong Sell) or maybe a Zacks Rank #4 (Sell).
Eagle Materials (EXP - Free Report) recently reported an in-line quarter and was also upgraded from hold to buy at two brokerages, so why is it a Zacks Rank #5 (Strong Sell)?
Recent Report
The most recent earnings report for EXP came on July 31, when the company met the Wall Street estimate with earnings of $1.17 per share. Revenue growth of 21% over the prior was good, but the $366M number was below the $369M estimate.
As noted the stock received a few upgrades, one was from Citigroup and the other was from Standpoint Research
Over the last 7, 30 and 60 days, there have been multiple negative estimate revisions for EXP. In that same time horizon, there were no positive earnings estimate revisions.
7 days ago, the current quarter was looking at $1.62, but now that number has slipped to $1.56. The estimate for the following quarter has also slipped and both of those revisions lower have taken a toll on the current year estimate which is down to $5.32 from $5.43.
Next Year
While those few pennies here and there sting, the real pain is in the revision for next year. The analysts materially changed their outlook on this stock and we see estimates for Fiscal 2019 have fallen from $8.20 to $6.82. That is a huge move lower and easily the biggest reason for the stock to be a Zack Rank #5 (Strong Sell).
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
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Bear Of The Day: Eagle Materials (EXP)
The Bear of the Day is an article that is supposed to highlight why a stock is a Zacks Rank #5 (Strong Sell) or maybe a Zacks Rank #4 (Sell).
Eagle Materials (EXP - Free Report) recently reported an in-line quarter and was also upgraded from hold to buy at two brokerages, so why is it a Zacks Rank #5 (Strong Sell)?
Recent Report
The most recent earnings report for EXP came on July 31, when the company met the Wall Street estimate with earnings of $1.17 per share. Revenue growth of 21% over the prior was good, but the $366M number was below the $369M estimate.
As noted the stock received a few upgrades, one was from Citigroup and the other was from Standpoint Research
So Why Zacks Rank #5 (Strong Sell)?
The Zacks Rank focuses on earnings estimates and the best place to look at the recent history of earnings estimates this page (https://www.zacks.com/stock/quote/EXP/detailed-estimates) the detailed estimates page.
Over the last 7, 30 and 60 days, there have been multiple negative estimate revisions for EXP. In that same time horizon, there were no positive earnings estimate revisions.
7 days ago, the current quarter was looking at $1.62, but now that number has slipped to $1.56. The estimate for the following quarter has also slipped and both of those revisions lower have taken a toll on the current year estimate which is down to $5.32 from $5.43.
Next Year
While those few pennies here and there sting, the real pain is in the revision for next year. The analysts materially changed their outlook on this stock and we see estimates for Fiscal 2019 have fallen from $8.20 to $6.82. That is a huge move lower and easily the biggest reason for the stock to be a Zack Rank #5 (Strong Sell).
Eagle Materials Inc Price and Consensus
Eagle Materials Inc Price and Consensus | Eagle Materials Inc Quote
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future. Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>