Trade-Ideas LLC identified
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Eagle Materials as such a stock due to the following factors:
- EXP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $65.6 million.
- EXP has traded 136,411 shares today.
- EXP is trading at 7.70 times the normal volume for the stock at this time of day.
- EXP is trading at a new low 4.00% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on EXP:
Eagle Materials Inc. produces and sells construction products and building materials used in residential, industrial, commercial, and infrastructure construction; and products used in oil and natural gas extraction in the United States. The stock currently has a dividend yield of 0.5%. EXP has a PE ratio of 2. Currently there are 3 analysts that rate Eagle Materials a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Eagle Materials has been 772,700 shares per day over the past 30 days. Eagle has a market cap of $3.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 1.07 and a short float of 4.1% with 2.18 days to cover. Shares are down 0.4% year-to-date as of the close of trading on Thursday.
rates Eagle Materials as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 7.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Construction Materials industry and the overall market, EAGLE MATERIALS INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- EAGLE MATERIALS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EAGLE MATERIALS INC increased its bottom line by earning $3.71 versus $2.48 in the prior year. This year, the market expects an improvement in earnings ($3.99 versus $3.71).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Construction Materials industry average. The net income increased by 0.1% when compared to the same quarter one year prior, going from $37.71 million to $37.76 million.
- Despite currently having a low debt-to-equity ratio of 0.50, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.86 is weak.
- You can view the full Eagle Materials Ratings Report.