This construction materials company beat earnings estimates by $0.20 last quarter.
Eagle Materials Inc. (EXP)
From Upside
Eagle Materials sells basic construction materials, but there is nothing basic about its sales momentum. The company has delivered nine consecutive years of higher revenue, with gains in 17 of the last 20 quarters.
Eagle is leveraged to surging home sales, reflecting favorable demographic trends, low mortgage rates, and a flight to the suburbs fueled by the pandemic.
Eagle has rallied 37% since reporting December-quarter results on Jan. 28. Per-share earnings increased 29%, while revenue advanced 18% and topped expectations, fueled by shipment growth of 9% for wallboard and 28% for cement. Spurred by improved volumes and prices, analysts expect per-share profits to jump 23% in fiscal 2021 ending March. Sales are expected to climb 11%.
The stock, capable of climbing 20% in the year ahead, is rated Buy.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, March 1, 2021
Sell: Perficient, Inc. (PRFT)
From Upside
Updated from WSBD 822, October 16, 2019
Perficient was dropped from coverage. While Perficient has a history of beating consensus profit estimates, we felt the prudent move was to lock up gains in the stock, which had rallied 20% in 2021.
Richard J. Moroney, CFA, Upside, upsidestocks.com, 800-233-5922, March 1, 2021