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North American Construction (NOA) Gains But Lags Market: What You Should Know

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North American Construction (NOA - Free Report) closed the most recent trading day at $10.88, moving +0.83% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.05%. At the same time, the Dow added 1.02%, and the tech-heavy Nasdaq gained 1.66%.

Prior to today's trading, shares of the heavy construction and mining services company had lost 10.31% over the past month. This has lagged the Construction sector's loss of 2.47% and the S&P 500's loss of 2.76% in that time.

Wall Street will be looking for positivity from NOA as it approaches its next earnings report date. Meanwhile, our latest consensus estimate is calling for revenue of $122.63 million, up 99.11% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $520.38 million. These totals would mark changes of +221.43% and +64.35%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NOA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. NOA is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that NOA has a Forward P/E ratio of 7.99 right now. This valuation marks a discount compared to its industry's average Forward P/E of 11.05.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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