Construction Partners (ROAD) Gains As Market Dips: What You Should Know
In the latest market close, Construction Partners (ROAD) reached $42, with a +1.38% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.56%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.59%.
Shares of the road and highway construction company have depreciated by 6.67% over the course of the past month, underperforming the Construction sector's loss of 1.43% and the S&P 500's gain of 1.2%.
Market participants will be closely following the financial results of Construction Partners in its upcoming release. The company plans to announce its earnings on February 9, 2024. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 225% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $384.03 million, indicating a 12.36% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and a revenue of $1.79 billion, representing changes of +35.11% and +14.2%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Construction Partners. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Construction Partners is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Construction Partners has a Forward P/E ratio of 32.69 right now. This expresses a premium compared to the average Forward P/E of 17.16 of its industry.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
