Construction Partners (ROAD) Gains As Market Dips: What You Should Know
Construction Partners (ROAD) closed the most recent trading day at $41.33, moving +0.29% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%.
The road and highway construction company's stock has dropped by 5.81% in the past month, falling short of the Construction sector's gain of 6.17% and the S&P 500's gain of 3.98%.
Investors will be eagerly watching for the performance of Construction Partners in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 225% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $384.03 million, showing a 12.36% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.27 per share and revenue of $1.79 billion. These totals would mark changes of +35.11% and +14.2%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Construction Partners. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Construction Partners is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Construction Partners is presently trading at a Forward P/E ratio of 32.51. For comparison, its industry has an average Forward P/E of 17.14, which means Construction Partners is trading at a premium to the group.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
