Back to top

Image: Bigstock

Eagle Materials (EXP) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Eagle Materials (EXP - Free Report) closed at $162.50, marking a -0.97% move from the previous day. This change lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.31%, and the Nasdaq, a tech-heavy index, lost 0.09%.

Prior to today's trading, shares of the maker of gypsum wallboard and cement had lost 7.3% over the past month. This has lagged the Construction sector's loss of 4.72% and the S&P 500's loss of 1.43% in that time.

Eagle Materials will be looking to display strength as it nears its next earnings release. In that report, analysts expect Eagle Materials to post earnings of $4.18 per share. This would mark year-over-year growth of 12.37%. Our most recent consensus estimate is calling for quarterly revenue of $632.21 million, up 4.49% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.91 per share and revenue of $2.25 billion. These totals would mark changes of +11.01% and +7.6%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Eagle Materials. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.11% higher. Eagle Materials currently has a Zacks Rank of #3 (Hold).

Investors should also note Eagle Materials's current valuation metrics, including its Forward P/E ratio of 11.8. This valuation marks a discount compared to its industry's average Forward P/E of 16.6.

The Building Products - Concrete and Aggregates industry is part of the Construction sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow EXP in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Eagle Materials Inc (EXP) - free report >>

Published in