Construction Partners (ROAD) Outperforms Broader Market: What You Need to Know
The latest trading session saw Construction Partners (ROAD) ending at $42, denoting a +0.33% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily gain of 0.08%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw an increase of 0.36%.
The road and highway construction company's shares have seen a decrease of 4.8% over the last month, not keeping up with the Construction sector's loss of 2.24% and the S&P 500's gain of 2.4%.
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. On that day, Construction Partners is projected to report earnings of $0.13 per share, which would represent year-over-year growth of 225%. Simultaneously, our latest consensus estimate expects the revenue to be $384.03 million, showing a 12.36% escalation compared to the year-ago quarter.
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.
Any recent changes to analyst estimates for Construction Partners should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Construction Partners possesses a Zacks Rank of #3 (Hold).
Looking at its valuation, Construction Partners is holding a Forward P/E ratio of 33.03. For comparison, its industry has an average Forward P/E of 17.34, which means Construction Partners is trading at a premium to the group.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
