Construction Partners (ROAD) Stock Sinks As Market Gains: What You Should Know
Construction Partners (ROAD) closed the most recent trading day at $28.82, moving -1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.61%.
Coming into today, shares of the road and highway construction company had lost 10.43% in the past month. In that same time, the Construction sector gained 6.63%, while the S&P 500 gained 4.86%.
Investors will be hoping for strength from Construction Partners as it approaches its next earnings release, which is expected to be August 2, 2023. On that day, Construction Partners is projected to report earnings of $0.34 per share, which would represent 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.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.70 per share and revenue of $1.56 billion. These totals would mark changes of +70.73% and +19.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Construction Partners. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Construction Partners is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Construction Partners is holding a Forward P/E ratio of 41.88. This represents a premium compared to its industry's average Forward P/E of 17.52.
It is also worth noting that ROAD currently has a PEG ratio of 1.14. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.
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
