Construction Partners (ROAD) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Construction Partners (ROAD) closed at $44.12, marking a -0.36% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.04%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.03%.
Shares of the road and highway construction company have appreciated by 6.54% over the course of the past month, underperforming the Construction sector's gain of 14.44% and outperforming the S&P 500's gain of 5.28%.
Market participants will be closely following the financial results of Construction Partners in its upcoming release. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.27 per share and revenue of $1.79 billion, indicating changes of +35.11% and +14.2%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Construction Partners. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.59% decrease. As of now, Construction Partners holds a Zacks Rank of #3 (Hold).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 34.94. This expresses a premium compared to the average Forward P/E of 19.15 of its industry.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
