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CRH (CRH) Outpaces Stock Market Gains: What You Should Know

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CRH (CRH - Free Report) closed at $121.14 in the latest trading session, marking a +1.08% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.06%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.39%.

The building material company's shares have seen an increase of 7.09% over the last month, surpassing the Construction sector's gain of 1.11% and the S&P 500's gain of 3.94%.

The investment community will be closely monitoring the performance of CRH in its forthcoming earnings report. On that day, CRH is projected to report earnings of $2.17 per share, which would represent year-over-year growth of 15.43%. In the meantime, our current consensus estimate forecasts the revenue to be $11.23 billion, indicating a 6.78% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $5.62 per share and a revenue of $37.73 billion, demonstrating changes of +4.27% and +6.07%, respectively, from the preceding year.

Any recent changes to analyst estimates for CRH should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Right now, CRH possesses a Zacks Rank of #3 (Hold).

In the context of valuation, CRH is at present trading with a Forward P/E ratio of 21.34. This indicates a premium in contrast to its industry's Forward P/E of 19.2.

Meanwhile, CRH's PEG ratio is currently 1.73. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.89 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 136, this industry ranks in the bottom 45% of all industries, numbering over 250.

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 Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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