(EXP) Eagle Materials - Ratings and Ratios

Eagle Materials Inc. is a leading manufacturer and distributor of heavy construction materials and light building materials in the United States, operating through four key segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The companys diverse product portfolio includes Portland cement, gypsum wallboards, recycled paperboard, readymix concrete, and aggregates such as crushed stone, sand, and gravel. These products cater to various industries, including commercial and residential construction, public construction projects, and repair and remodel activities.

With a history dating back to 1963, Eagle Materials has established itself as a prominent player in the construction materials sector. The company has undergone significant transformations, including a name change from Centex Construction Products, Inc. to Eagle Materials, Inc. in 2004. Headquartered in Dallas, Texas, Eagle Materials has a strong presence in the US market, with its products being used in various infrastructure projects and construction activities.

Analyzing the companys technical data, we observe that the stock is currently trading at $200.33, with a 20-day SMA of $217.61 and a 50-day SMA of $220.53, indicating a potential downtrend. The 200-day SMA stands at $253.39, further suggesting a longer-term bearish trend. However, the Average True Range (ATR) of 7.21 (3.60%) indicates moderate volatility. Considering the fundamental data, Eagle Materials has a market capitalization of $6.61 billion, a P/E ratio of 14.68, and a forward P/E of 12.92, indicating a relatively undervalued stock. The companys Return on Equity (RoE) stands at 33.94%, demonstrating strong profitability.

Based on the technical and fundamental analysis, our forecast suggests that Eagle Materials Inc. may experience a short-term correction, potentially testing the 52-week low of $197.91. However, the companys strong RoE and relatively undervalued P/E ratio indicate a potential long-term rebound. If the company can maintain its profitability and navigate the current market volatility, we forecast a potential price target of $230-$240 in the near term, driven by a combination of technical recovery and fundamental strength. Nevertheless, this forecast is contingent upon the companys ability to adapt to changing market conditions and maintain its competitive edge in the construction materials sector.