Construction Partners (ROAD) Falls More Steeply Than Broader Market: What Investors Need to Know
Construction Partners (ROAD) ended the recent trading session at $51.40, demonstrating a -1.68% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.65% for the day. Meanwhile, the Dow experienced a drop of 0.49%, and the technology-dominated Nasdaq saw a decrease of 0.96%.
Coming into today, shares of the road and highway construction company had gained 11.57% in the past month. In that same time, the Construction sector gained 6.05%, while the S&P 500 gained 3.27%.
The upcoming earnings release of Construction Partners will be of great interest to investors. On that day, Construction Partners is projected to report earnings of -$0.04 per share, which would represent year-over-year growth of 63.64%. Meanwhile, our latest consensus estimate is calling for revenue of $367.92 million, up 13.26% from the prior-year quarter.
ROAD's full-year Zacks Consensus Estimates are calling for earnings of $1.35 per share and revenue of $1.81 billion. These results would represent year-over-year changes of +43.62% and +15.88%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Construction Partners. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Construction Partners holds a Zacks Rank of #3 (Hold).
Investors should also note Construction Partners's current valuation metrics, including its Forward P/E ratio of 38.87. This signifies a premium in comparison to the average Forward P/E of 18.78 for its industry.
We can also see that ROAD currently has a PEG ratio of 1.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.82 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 10, this industry ranks in the top 4% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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
