Construction Partners (ROAD) Increases Despite Market Slip: Here's What You Need to Know
Construction Partners (ROAD) closed the latest trading day at $38.27, indicating a +0.24% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.27%.
The road and highway construction company's shares have seen an increase of 7.34% over the last month, surpassing the Construction sector's loss of 7.93% and the S&P 500's loss of 3.95%.
The investment community will be paying close attention to the earnings performance of Construction Partners in its upcoming release. The company is forecasted to report an EPS of $0.52, showcasing a 108% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.3 million, up 18.13% from the year-ago period.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Construction Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 9.91% rise in the Zacks Consensus EPS estimate. Construction Partners is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 29.94. Its industry sports an average Forward P/E of 15.33, so one might conclude that Construction Partners is trading at a premium comparatively.
The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 49, this industry ranks in the top 20% of all industries, numbering over 250.
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
