Eagle Materials (EXP) shares rallied 5.3% in the last trading session to close at $224.58. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% gain over the past four weeks.
Eagle Materials shares gained as stronger-than-expected U.S. pending home sales data signaled improving housing-market activity, supporting demand expectations for construction materials. Investor sentiment was further aided by a slight decline in mortgage rates to 6.47% from 6.52% in the prior week, according to Freddie Mac, while easing geopolitical tensions and progress in international peace negotiations contributed to a broader market rally.
This maker of gypsum wallboard and cement is expected to post quarterly earnings of $3.27 per share in its upcoming report, which represents a year-over-year change of -13%. Revenues are expected to be $627.26 million, down 1.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Eagle Materials, the consensus EPS estimate for the quarter has been revised 2.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EXP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Eagle Materials belongs to the Zacks Building Products - Concrete and Aggregates industry. Another stock from the same industry, Cemex (CX), closed the last trading session 1% higher at $12.73. Over the past month, CX has returned -0.6%.
Cemex's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.3. Compared to the company's year-ago EPS, this represents a change of +30.4%. Cemex currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
