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Why CRH (CRH) Outpaced the Stock Market Today

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CRH (CRH - Free Report) ended the recent trading session at $117.85, demonstrating a +1.3% change from the preceding day's closing price. This change outpaced the S&P 500's 0.58% gain on the day.

Coming into today, shares of the building material company had gained 5.08% in the past month. In that same time, the Construction sector lost 3.22%, while the S&P 500 gained 3.68%.

Market participants will be closely following the financial results of CRH in its upcoming release. The company is forecasted to report an EPS of $2.18, showcasing a 15.96% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $11.24 billion, indicating a 6.9% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.57 per share and a revenue of $37.74 billion, representing changes of +3.34% and +6.1%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for CRH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.92% lower. CRH is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CRH is holding a Forward P/E ratio of 20.88. Its industry sports an average Forward P/E of 19.43, so one might conclude that CRH is trading at a premium comparatively.

One should further note that CRH currently holds a PEG ratio of 1.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Building Products - Miscellaneous industry stood at 1.86 at the close of the market yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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