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Installed Building Products (IBP) Falls More Steeply Than Broader Market: What Investors Need to Know

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The latest trading session saw Installed Building Products (IBP - Free Report) ending at $255.84, denoting a -0.94% adjustment from its last day's close. The stock's change was less than the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.03%.

The residential insulation installer's stock has climbed by 8.58% in the past month, exceeding the Construction sector's gain of 4.37% and the S&P 500's gain of 2.57%.

The investment community will be closely monitoring the performance of Installed Building Products in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.28, reflecting a 6.05% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $678.89 million, indicating a 2.97% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.73 per share and a revenue of $3.01 billion, representing changes of +14.22% and +8.27%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Installed Building Products. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Installed Building Products currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Installed Building Products is currently trading at a Forward P/E ratio of 22.02. This denotes a premium relative to the industry's average Forward P/E of 21.05.

We can also see that IBP currently has a PEG ratio of 1.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. IBP's industry had an average PEG ratio of 1.87 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 13, positioning it in the top 6% 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.

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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