Construction Partners (ROAD) Advances While Market Declines: Some Information for Investors
Construction Partners (ROAD) ended the recent trading session at $43.32, demonstrating a +0.02% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.36%.
The road and highway construction company's shares have seen an increase of 3.29% over the last month, not keeping up with the Construction sector's gain of 13.61% and the S&P 500's gain of 5.21%.
Analysts and investors alike will be keeping a close eye on the performance of Construction Partners in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 225% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $384.03 million, reflecting a 12.36% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and revenue of $1.79 billion, which would represent changes of +35.11% and +14.2%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Construction Partners. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.59% downward. Currently, Construction Partners is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Construction Partners is currently exchanging hands at a Forward P/E ratio of 34.17. For comparison, its industry has an average Forward P/E of 18.6, which means Construction Partners is trading at a premium to the group.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 15% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
