Eagle Story

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EXP -- USA Stock  

USD 80.82  1.07  1.31%

It appears that Eagle Materials will continue to recover much faster as its share price surged up 2.23% today. The company's current daily volatility is 3.98 percent, with a beta of 1.84 and an alpha of 0.4 over DOW. As many millenniums are trying to avoid construction materials, it makes sense to recap Eagle Materials a little further and try to understand its current market patterns. We will analyze why Eagle Materials investors may still consider a stake in the business.
Published over a month ago
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What does a recent Eagle Materials volatility decline mean for insiders?
Eagle Materials has roughly 118.65 M in cash with 399.3 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.85. Macroaxis provides advice on Eagle Materials to complement and cross-verify current analyst consensus on Eagle Materials. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in Eagle Materials, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Eagle Materials along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Eagle Materials's Liquidity

Eagle Materials financial leverage refers to using borrowed capital as a funding source to finance Eagle Materials ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Eagle Materials financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Eagle Materials's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Eagle Materials, but it might be worth checking our own buy vs. sell analysis

Eagle Materials Correlation with Peers

Investors in Eagle can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Eagle Materials. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Eagle Materials and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Eagle is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Eagle for more details

What is driving Eagle Materials Investor Appetite?

Eagle Materials appears to be very steady, given 1 month investment horizon. Eagle Materials secures Sharpe Ratio (or Efficiency) of 0.15, which denotes the company had 0.15% of return per unit of risk over the last month. Our standpoint towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By reviewing Eagle Materials technical indicators you can presently evaluate if the expected return of 0.59% is justified by implied risk. Please utilize Eagle Materials Downside Deviation of 4.24, mean deviation of 2.97, and Coefficient Of Variation of 580.95 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Our take on today Eagle Materials roll up

Recent expected short fall is at -3.16. Eagle Materials shows above-average downside volatility for the selected time horizon. We advise investors to inspect Eagle Materials further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Eagle Materials future alpha.

Our Final Take On Eagle Materials

Although some firms within the building materials industry are still a little expensive, even after the recent corrections, Eagle Materials may offer a potential longer-term growth to insiders. To sum up, as of the 30th of July 2020, our present 30 days 'Buy-vs-Sell' recommendation on the firm is Buy. We believe Eagle Materials is undervalued with below average chance of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Eagle Materials. Please refer to our Terms of Use for any information regarding our disclosure principles.

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