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Construction Partners (ROAD) Gains As Market Dips: What You Should Know
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In the latest trading session, Construction Partners (ROAD - Free Report) closed at $15.63, marking a +0.9% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 1.19%.
Heading into today, shares of the road and highway construction company had gained 3.61% over the past month, outpacing the Construction sector's gain of 1.97% and the S&P 500's gain of 2.62% in that time.
Investors will be hoping for strength from ROAD as it approaches its next earnings release, which is expected to be August 8, 2019. On that day, ROAD is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 3.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $230.51 million, up 18.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $800.61 million. These totals would mark changes of -3.49% and +17.72%, respectively, from last year.
Any recent changes to analyst estimates for ROAD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ROAD is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ROAD is currently trading at a Forward P/E ratio of 18.75. Its industry sports an average Forward P/E of 16.26, so we one might conclude that ROAD is trading at a premium comparatively.
It is also worth noting that ROAD currently has a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Construction Partners (ROAD) Gains As Market Dips: What You Should Know
In the latest trading session, Construction Partners (ROAD - Free Report) closed at $15.63, marking a +0.9% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 1.19%.
Heading into today, shares of the road and highway construction company had gained 3.61% over the past month, outpacing the Construction sector's gain of 1.97% and the S&P 500's gain of 2.62% in that time.
Investors will be hoping for strength from ROAD as it approaches its next earnings release, which is expected to be August 8, 2019. On that day, ROAD is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 3.45%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $230.51 million, up 18.16% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $800.61 million. These totals would mark changes of -3.49% and +17.72%, respectively, from last year.
Any recent changes to analyst estimates for ROAD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ROAD is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, ROAD is currently trading at a Forward P/E ratio of 18.75. Its industry sports an average Forward P/E of 16.26, so we one might conclude that ROAD is trading at a premium comparatively.
It is also worth noting that ROAD currently has a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Building Products - Miscellaneous was holding an average PEG ratio of 1.54 at yesterday's closing price.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.