Eagle Materials Inc. (EXP): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Eagle Materials ( EXP) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 0.3%. By the end of trading, Eagle Materials fell $1.79 (-2.8%) to $63.16 on average volume. Throughout the day, 1.1 million shares of Eagle Materials exchanged hands as compared to its average daily volume of 734,800 shares. The stock ranged in price between $62.98-$64.95 after having opened the day at $64.95 as compared to the previous trading day's close of $64.95. Other companies within the Industrial Goods sector that declined today were: China Valves Technology ( CVVT), down 53.6%, UQM Technologies ( UQM), down 9.5%, Research Frontiers ( REFR), down 6.3%, and MagneGas Corporation ( MNGA), down 6.3%.
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Eagle Materials Inc. manufactures and distributes building products used in residential, industrial, commercial, and infrastructure construction in the United States. The company operates in four segments: Cement, Gypsum Wallboard, Recycled Paperboard, and Concrete and Aggregates. Eagle Materials has a market cap of $3.21 billion and is part of the materials & construction industry. The company has a P/E ratio of 66.9, above the S&P 500 P/E ratio of 17.7. Shares are up 12.1% year to date as of the close of trading on Friday. Currently there are no analysts that rate Eagle Materials a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Eagle Materials as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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