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Bear of the Day: Arcosa, Inc. (ACA)

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Key Takeaways

  • Arcosa's recent downward earnings revisions earn it a Zacks Rank #5 (Strong Sell).
  • ACA is facing some near-term headwinds, and its industry is in the bottom 30% of over 240 Zacks industries.

Arcosa, Inc. (ACA - Free Report)  provides infrastructure-related products and solutions to key growth markets. The stock remains strong long-term, but might face pressure in the short run as its earnings revisions fade.

Arcosa’s downward EPS revisions since its first quarter earnings report on April 30 landed the stock a Zacks Rank #5 (Strong Sell). ACA is projected to see both it revenue and its EPS slip on a YoY basis in 2026.

What’s Going on with Arcosa Stock Right Now?

Arcosa is a leader in infrastructure-related products and solutions. The firm breaks down its business into two reportable categories: Construction Products and Engineered Structures.

ACA is growing alongside wider trends in the U.S., including the AI-boosted energy infrastructure spending boom. The firm’s construction unit includes aggregates, specialty materials, and more, while its Engineered Structures division is highlighted by utility structures, telecom structures, and other critical infrastructure.

The Dallas, Texas-headquartered firm grew its revenue from $1.94 billion in 2020 to $2.88 in 2025. It expanded its adjusted earnings significantly during this period as well, but the growth has been a bit choppier.

Zacks Investment Research
Image Source: Zacks Investment Research

ACA’s earnings estimate for 2026 is down 11% in the last several months, with its FY27 Zacks consensus 12% lower. These downward revisions help it earn its Zacks Rank #5 (Strong Sell) and highlight its near-term headwinds.

Even though its earnings outlook is down and it’s projected to see its EPS slipped 5.4% YoY in 2026 on 9% lower revenue, the stock is still trading near its all-time highs. That means Wall Street might not have fully priced in its near-term setbacks.

Investors likely want to stay away from Arcosa for now, given its negative earnings revisions and its Zacks Rank #5 (Strong Sell). Its Building Products – Miscellaneous industry is also in the bottom 28% of over 240 Zacks industries, which adds to it potential near-term headwinds.

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