Why the Market Dipped But Construction Partners (ROAD) Gained Today
Construction Partners (ROAD) closed the most recent trading day at $43.40, moving +0.21% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.07%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.36%.
The road and highway construction company's stock has dropped by 1.84% in the past month, falling short of the Construction sector's loss of 1.36% and the S&P 500's gain of 3.05%.
Analysts and investors alike will be keeping a close eye on the performance of Construction Partners in its upcoming earnings disclosure. The company's earnings report is set to go public on February 9, 2024. The company is predicted to post an EPS of $0.13, indicating a 225% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $384.03 million, up 12.36% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.27 per share and a revenue of $1.79 billion, representing changes of +35.11% and +14.2%, respectively, from the prior year.
Any recent changes to analyst estimates for Construction Partners should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Construction Partners boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 34.17. This denotes a premium relative to the industry's average Forward P/E of 17.27.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
