Construction Partners (ROAD) Gains But Lags Market: What You Should Know
The latest trading session saw Construction Partners (ROAD) ending at $39.33, denoting a +0.85% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.06% for the day. On the other hand, the Dow registered a gain of 0.93%, and the technology-centric Nasdaq increased by 1.2%.
Shares of the road and highway construction company have appreciated by 9.4% over the course of the past month, outperforming the Construction sector's loss of 4.72% and the S&P 500's loss of 3%.
The upcoming earnings release of Construction Partners will be of great interest to investors. 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, our latest consensus estimate is calling for revenue of $464.3 million, up 18.13% from the prior-year quarter.
Any recent changes to analyst estimates for Construction Partners should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.91% higher. At present, Construction Partners boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Construction Partners's current valuation metrics, including its Forward P/E ratio of 30.59. This valuation marks a premium compared to its industry's average Forward P/E of 14.56.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 38, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
