manufacturer Eagle Materials (nyse: EXP - news - people ) to post
annualized earnings growth of 35% over the next three to five years.
Yet the stock trades for 13-times its consensus earnings estimate for
2007, compared to an average of 15 for its industry peers.
Why so cheap? One culprit here is the housing slowdown. Eagle makes
gypsum wallboard, cement, paperboard and concrete--all items used in
the residential construction industry.
cement for road, bridge and commercial construction. The company
surprised analysts in its latest quarterly filings for Sept. 30, with
earnings 3% above the consensus estimate. Quarterly revenues increased
16% over the same period the prior year; net earnings went up 53%.
