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Eagle Materials (EXP) Ascends While Market Falls: Some Facts to Note

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Eagle Materials (EXP - Free Report) closed the most recent trading day at $185.29, moving +0.09% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.54%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.84%.

The maker of gypsum wallboard and cement's shares have seen an increase of 12.15% over the last month, not keeping up with the Construction sector's gain of 15.13% and outstripping the S&P 500's gain of 8.62%.

Market participants will be closely following the financial results of Eagle Materials in its upcoming release. The company's earnings per share (EPS) are projected to be $3.57, reflecting a 11.56% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $537.82 million, reflecting a 5.15% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.14 per share and a revenue of $2.24 billion, signifying shifts of +12.85% and +4.38%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Eagle Materials. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Eagle Materials is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Eagle Materials is holding a Forward P/E ratio of 13.09. For comparison, its industry has an average Forward P/E of 12.7, which means Eagle Materials is trading at a premium to the group.

The Building Products - Concrete and Aggregates industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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