Installed Building Products (IBP) closed the most recent trading day at $74.52, moving -1.68% from the previous trading session. This change lagged the S&P 500's daily gain of 0.65%. At the same time, the Dow added 0.94%, and the tech-heavy Nasdaq gained 0.9%.
Coming into today, shares of the residential insulation installer had gained 4.38% in the past month. In that same time, the Construction sector gained 2.97%, while the S&P 500 gained 2.97%.
Wall Street will be looking for positivity from IBP as it approaches its next earnings report date. In that report, analysts expect IBP to post earnings of $0.86 per share. This would mark year-over-year growth of 19.44%. Meanwhile, our latest consensus estimate is calling for revenue of $389.71 million, up 10.36% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for IBP. 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 has moved 0.61% higher. IBP is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that IBP has a Forward P/E ratio of 20.37 right now. This represents a premium compared to its industry's average Forward P/E of 18.26.
We can also see that IBP currently has a PEG ratio of 1.27. 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. IBP's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 28% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.