Eagle Materials, KapStone Shares Attractive Says Hodges Fund Manager

Shares of Dallas-based Eagle Materials will continue to climb higher because of its exposure to the Texas market, as well as increasingly attractive wallboard pricing, said Eric Marshall, portfolio manager for the Hodges Small Cap Fund. Marshall added that Eagle's sales will also rise when it ramps up its fracking sand production. He is also bullish on KapStone Paper and Packaging, saying the company has excess virgin fiber capacity for which there is heavy demand and that it is a potential takeout candidate. Finally, Marshall said he is positive on beaten-down shares of Dixie Group because the rug-maker will improve its margins.