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Arcosa (ACA) Gains But Lags Market: What You Should Know

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Arcosa (ACA - Free Report) closed the most recent trading day at $43.88, moving +0.3% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq gained 1.34%.

Heading into today, shares of the provider of infrastructure-related products and services had lost 4.5% over the past month, lagging the Construction sector's gain of 0.19% and the S&P 500's of 0% in that time.

ACA will be looking to display strength as it nears its next earnings release. On that day, ACA is projected to report earnings of $0.34 per share, which would represent a year-over-year decline of 15%. Our most recent consensus estimate is calling for quarterly revenue of $485 million, up 29.54% from the year-ago period.

It is also important to note the recent changes to analyst estimates for ACA. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. ACA currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, ACA is holding a Forward P/E ratio of 16.76. Its industry sports an average Forward P/E of 16.76, so we one might conclude that ACA is trading at a no noticeable deviation comparatively.

We can also see that ACA currently has a PEG ratio of 1.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous was holding an average PEG ratio of 1.33 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 67, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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