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Why Construction Partners (ROAD) Outpaced the Stock Market Today
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Construction Partners (ROAD - Free Report) closed the most recent trading day at $53.96, moving +1.75% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.2%.
Shares of the road and highway construction company have appreciated by 15.21% over the course of the past month, outperforming the Construction sector's gain of 9.58% and the S&P 500's gain of 5.11%.
The upcoming earnings release of Construction Partners will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.04, reflecting a 63.64% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $367.92 million, up 13.26% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $1.81 billion. These totals would mark changes of +43.62% and +15.88%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Construction Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Construction Partners possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 39.43. This represents a premium compared to its industry's average Forward P/E of 20.34.
It is also worth noting that ROAD currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 8, positioning it in the top 4% 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.
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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Why Construction Partners (ROAD) Outpaced the Stock Market Today
Construction Partners (ROAD - Free Report) closed the most recent trading day at $53.96, moving +1.75% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.32%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.2%.
Shares of the road and highway construction company have appreciated by 15.21% over the course of the past month, outperforming the Construction sector's gain of 9.58% and the S&P 500's gain of 5.11%.
The upcoming earnings release of Construction Partners will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.04, reflecting a 63.64% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $367.92 million, up 13.26% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $1.81 billion. These totals would mark changes of +43.62% and +15.88%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Construction Partners. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Construction Partners possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Construction Partners is currently trading at a Forward P/E ratio of 39.43. This represents a premium compared to its industry's average Forward P/E of 20.34.
It is also worth noting that ROAD currently has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Building Products - Miscellaneous industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 8, positioning it in the top 4% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.