Eagle Materials, Inc. (EXP)

JFiorini (98.56) Submitted: 1/03/07 10:30 AM : Start Price: $42.02 EXP Score: -14.39

Over the last five years, earnings have increased at about 25% annualized, while the price has only appreciated roughly 12% annualized over the same period. Despite taking on fresh debt (which mgmt. can use to further magnify ROE) Eagle is still in a solid financial position relative to its peers. The fundamentals reflect a strong business model and good mgmt., and the techincals are right. Add all this to the fact that it's trading at a 25% P/E discount relative to its peers, and it's clear that EXP is a buy.

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