On Jun 29, Zacks Investment Research upgraded
Eagle Materials Inc.
) to a Zacks Rank #1 (Strong Buy) as the stock continues to gain
momentum from better housing fundamentals.
Why the Upgrade?
The building materials and products supplier, Eagle Materials,
is witnessing concomitant rise in its product demand as well as
volume with improving new-home demand in the U.S.
Gaining from improving demand for its products, Eagle
Materials has beaten the Zacks Consensus Estimate in two of the
past four quarters while meeting in one.
Its fiscal fourth-quarter 2013 results (announced on May 14)
were fairly strong. Adjusted earnings of 42 cents per share beat
the Zacks Consensus Estimate by 5.0%. The results soared 110.0%
from the prior-year quarter driven largely by higher pricing and
increased demand for its products.
Net sales came in at $159.0 million, up 36.0% from the
prior-year quarter, driven largely by wallboard and cement
pricing gains and higher volumes in all lines of business
considering the strength in new residential construction.
The company has bright prospects ahead, thanks to a positive
end-market outlook, cost reduction efforts and an
acquisition-based growth strategy. Moreover, its new frac sand
business came online in March and started selling its products in
April. This is expected to significantly boost both sales and
Estimates are continuously rising, reflecting expectations for
significantly higher year-over-year earnings growth rates in
fiscal 2013 and 2014.
Other Stocks to Consider
Other stocks in the broader hosing industry, which are
currently doing well and are worth considering include
D.R. Horton, Inc.
). All the companies carry a Zacks Rank #1 (Strong Buy).
D R HORTON INC (DHI): Free Stock Analysis
EAGLE MATERIALS (EXP): Free Stock Analysis
LENNAR CORP -A (LEN): Free Stock Analysis
PULTE GROUP ONC (PHM): Free Stock Analysis
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