Is Eagle Materials (EXP) The Best Value Stock For Long-Term Gains?

Baupost’s Stake: $169,134,000

Eagle Materials (NYSE:EXP) produces cement, gypsum wallboard, aggregates, and recycled paperboard crossed 70+ facilities successful 21 states. Its moat lies successful the sheer trouble of replicating its web — you cannot easy physique caller cement plants oregon quarries, and the company’s standard and geographic scope springiness it existent pricing powerfulness successful section markets.

The concern has been nether pressure. The Gypsum Wallboard conception — heavy tied to residential operation — saw gross plunge 16% arsenic lodging completions fell and gathering permits dropped 5.8% year-on-year. A lodging betterment is not expected until 2027. However, the Cement conception is holding up well, with volumes increasing 9.3% and operating net climbing from $86.8 cardinal to $91.3 million. Importantly, absorption has signaled terms increases are coming — which, if volumes hold, should beryllium a meaningful net tailwind.

Bulls judge the banal is undervalued. Based connected projected full-year figures of $424.5 cardinal successful nett profits and EBITDA of $782.5 million, Eagle Materials (NYSE:EXP) trades astatine a discount to each comparable peer. A re-rating to adjacent averages would connote upside of 79% to 101.5%. Even utilizing the cheapest adjacent arsenic a benchmark, upside ranges from 2.9% to 22.1%.

J.P. Morgan precocious upgraded the banal to Neutral from Underweight with a $225 terms target, citing improving cement demand, wallboard weakness that apt troughed successful Q4 2025, and an optimistic outlook for the backmost fractional of 2026. JPM specifically highlighted steadfast infrastructure spending, robust information halfway construction, and rising request for warehouses and vigor projects arsenic request drivers.

While we admit the imaginable of EXP arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey connected Google News.