Construction Partners (ROAD) Declines More Than Market: Some Information for Investors
In the latest market close, Construction Partners (ROAD) reached $51.34, with a -0.48% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.
The road and highway construction company's stock has climbed by 10.21% in the past month, exceeding the Construction sector's gain of 8.1% and the S&P 500's gain of 2.7%.
The upcoming earnings release of Construction Partners will be of great interest to investors. The company is predicted to post an EPS of -$0.04, indicating a 63.64% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $367.92 million, up 13.26% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.35 per share and a revenue of $1.81 billion, signifying shifts of +43.62% and +15.88%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Construction Partners. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.11% upward. Currently, Construction Partners is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Construction Partners currently has a Forward P/E ratio of 38.36. This valuation marks a premium compared to its industry's average Forward P/E of 18.66.
It's also important to note that ROAD currently trades at a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Building Products - Miscellaneous industry was having an average PEG ratio of 1.63.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 15, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ROAD in the coming trading sessions, be sure to utilize Zacks.com.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
