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Installed Building Products (IBP) Outpaces Stock Market Gains: What You Should Know

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Installed Building Products (IBP - Free Report) ended the recent trading session at $244.69, demonstrating a +1.72% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.91%. At the same time, the Dow added 0.85%, and the tech-heavy Nasdaq gained 1.51%.

Heading into today, shares of the residential insulation installer had lost 7.29% over the past month, lagging the Construction sector's loss of 6.97% and the S&P 500's loss of 4.2% in that time.

Market participants will be closely following the financial results of Installed Building Products in its upcoming release. The company plans to announce its earnings on May 9, 2024. The company is forecasted to report an EPS of $2.23, showcasing a 3.72% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $676.6 million, up 2.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.67 per share and a revenue of $3.01 billion, demonstrating changes of +13.63% and +8.32%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Installed Building Products. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% lower. Installed Building Products is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Installed Building Products's current valuation metrics, including its Forward P/E ratio of 20.62. This denotes a premium relative to the industry's average Forward P/E of 19.41.

The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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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