Construction Partners (ROAD) Advances While Market Declines: Some Information for Investors
Construction Partners (ROAD) closed the latest trading day at $40, indicating a +1.16% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.08%. At the same time, the Dow added 0.16%, and the tech-heavy Nasdaq lost 0.22%.
Shares of the road and highway construction company have appreciated by 1.38% over the course of the past month, underperforming the Construction sector's gain of 2.4% and the S&P 500's gain of 1.42%.
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 report is set to go public on November 29, 2023. It is anticipated that the company will report an EPS of $0.52, marking a 108% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.3 million, up 18.13% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Construction Partners. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Construction Partners possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Construction Partners's current valuation metrics, including its Forward P/E ratio of 31.01. For comparison, its industry has an average Forward P/E of 16.09, 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 has a Zacks Industry Rank of 38, which puts it in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
