Here's Why Eagle Materials (EXP) Fell More Than Broader Market
Eagle Materials (EXP) closed the latest trading day at $155.03, indicating a -1.48% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 1.26%. On the other hand, the Dow registered a loss of 0.86%, and the technology-centric Nasdaq decreased by 1.54%.
Shares of the maker of gypsum wallboard and cement have depreciated by 4.1% over the course of the past month, outperforming the Construction sector's loss of 7.65% and lagging the S&P 500's loss of 3.67%.
Market participants will be closely following the financial results of Eagle Materials in its upcoming release. The company plans to announce its earnings on October 26, 2023. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $632.21 million, reflecting a 4.49% rise from the equivalent quarter last year.
Looking at the full year, the 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 +4.74%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Eagle Materials. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Eagle Materials possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Eagle Materials is presently trading at a Forward P/E ratio of 11.32. This represents a discount compared to its industry's average Forward P/E of 17.22.
The Building Products - Concrete and Aggregates industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 10% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Eagle Materials Inc (EXP) : Free Stock Analysis Report
