In the latest trading session, North American Construction (NOA - Free Report) closed at $10.42, marking a -0.76% move from the previous day. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.
Coming into today, shares of the heavy construction and mining services company had lost 2.69% in the past month. In that same time, the Construction sector gained 4.13%, while the S&P 500 gained 5.97%.
Investors will be hoping for strength from NOA as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $122.63 million, up 99.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $520.38 million, which would represent changes of +221.43% and +64.35%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for NOA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NOA is currently trading at a Forward P/E ratio of 7.78. For comparison, its industry has an average Forward P/E of 12.42, which means NOA is trading at a discount to the group.
The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 157, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.