Construction Partners (ROAD) Rises But Trails Market: What Investors Should Know
Construction Partners (ROAD) closed the most recent trading day at $38.45, moving +0.39% from the previous trading session. This move lagged the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The road and highway construction company's shares have seen an increase of 5.45% over the last month, surpassing the Construction sector's loss of 6.37% and the S&P 500's loss of 2.79%.
Market participants will be closely following the financial results of Construction Partners in its upcoming release. On that day, Construction Partners is projected to report earnings of $0.52 per share, which would represent year-over-year growth of 108%. Our most recent consensus estimate is calling for quarterly revenue of $464.3 million, up 18.13% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Construction Partners. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.91% higher. Currently, Construction Partners is carrying a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Construction Partners is presently trading at a Forward P/E ratio of 30.04. For comparison, its industry has an average Forward P/E of 14.76, 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 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
