Construction Partners (ROAD) Stock Moves -0.49%: What You Should Know
Construction Partners (ROAD) closed at $30.20 in the latest trading session, marking a -0.49% move from the prior day. This change was narrower than the S&P 500's 0.68% loss on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 3.19%.
Heading into today, shares of the road and highway construction company had lost 11.21% over the past month, lagging the Construction sector's gain of 8.04% and the S&P 500's gain of 3.58% in that time.
Wall Street will be looking for positivity from Construction Partners as it approaches its next earnings report date. This is expected to be August 2, 2023. In that report, analysts expect Construction Partners to post earnings of $0.34 per share. This would mark year-over-year growth of 47.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $433.81 million, up 14.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.70 per share and revenue of $1.56 billion, which would represent changes of +70.73% and +19.63%, respectively, from the prior 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 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Construction Partners currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Construction Partners currently has a Forward P/E ratio of 43.67. For comparison, its industry has an average Forward P/E of 17.93, which means Construction Partners is trading at a premium to the group.
Investors should also note that ROAD has a PEG ratio of 1.19 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 22, putting it in the top 9% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
