Construction Partners (ROAD - Free Report) closed the most recent trading day at $14.49, moving -0.34% from the previous trading session. This move lagged the S&P 500's daily gain of 0.23%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, lost 0.08%.
Heading into today, shares of the road and highway construction company had gained 12.63% over the past month, outpacing the Construction sector's gain of 0.8% and the S&P 500's gain of 3.84% in that time.
Investors will be hoping for strength from ROAD as it approaches its next earnings release. The company is expected to report EPS of $0.30, up 3.45% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $230.51 million, up 18.16% from the year-ago period.
ROAD's full-year Zacks Consensus Estimates are calling for earnings of $0.83 per share and revenue of $800.61 million. These results would represent year-over-year changes of -3.49% and +17.72%, respectively.
Investors might also notice recent changes to analyst estimates for ROAD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. ROAD is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, ROAD is holding a Forward P/E ratio of 17.6. Its industry sports an average Forward P/E of 16, so we one might conclude that ROAD is trading at a premium comparatively.
Meanwhile, ROAD's PEG ratio is currently 1.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.5 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% 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.
To follow ROAD in the coming trading sessions, be sure to utilize Zacks.com.