In the latest trading session, FORTERRA INC (FRTA) closed at $9.64, marking a -0.31% move from the previous day. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 1.09%.
Investors will be hoping for strength from FRTA as it approaches its next earnings release. The company is expected to report EPS of $0.32, up 540% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $437 million, up 6.53% from the year-ago period.
FRTA's full-year Zacks Consensus Estimates are calling for earnings of $0.69 per share and revenue of $1.60 billion. These results would represent year-over-year changes of +866.67% and +4.72%, respectively.
Any recent changes to analyst estimates for FRTA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. FRTA is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note FRTA's current valuation metrics, including its Forward P/E ratio of 14.01. For comparison, its industry has an average Forward P/E of 17.21, which means FRTA is trading at a discount to the group.
The Building Products - Concrete and Aggregates industry is part of the Construction sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.
To follow FRTA in the coming trading sessions, be sure to utilize Zacks.com.
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