Why Construction Partners (ROAD) Outpaced the Stock Market Today
In the latest trading session, Construction Partners (ROAD) closed at $44.15, marking a +1.54% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.03%. Meanwhile, the Dow gained 0.87%, and the Nasdaq, a tech-heavy index, added 1.26%.
The road and highway construction company's shares have seen an increase of 0.35% over the last month, not keeping up with the Construction sector's gain of 11.99% and the S&P 500's gain of 3.01%.
The investment community will be closely monitoring the performance of Construction Partners in its forthcoming earnings report. In that report, analysts expect Construction Partners to post earnings of $0.13 per share. This would mark year-over-year growth of 225%. At the same time, our most recent consensus estimate is projecting a revenue of $384.03 million, reflecting a 12.36% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.27 per share and a revenue of $1.79 billion, demonstrating changes of +35.11% and +14.2%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Construction Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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, there's been a 0.59% fall in the Zacks Consensus EPS estimate. Construction Partners currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 34.3. This represents a premium compared to its industry's average Forward P/E of 18.7.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% 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.
To follow ROAD in the coming trading sessions, be sure to utilize Zacks.com.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
