Back to top

Image: Bigstock

North American Construction (NOA) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

North American Construction (NOA) closed at $11.01 in the latest trading session, marking a -1.61% move from the prior day. This move lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.14%.

Prior to today's trading, shares of the heavy construction and mining services company had lost 2.95% over the past month. This has lagged the Construction sector's gain of 3.41% and the S&P 500's gain of 3.63% in that time.

Wall Street will be looking for positivity from NOA as it approaches its next earnings report date. This is expected to be February 19, 2020. On that day, NOA is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 300%. Meanwhile, our latest consensus estimate is calling for revenue of $159.41 million, up 60.81% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for NOA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. NOA currently has a Zacks Rank of #2 (Buy).

Digging into valuation, NOA currently has a Forward P/E ratio of 7.04. This represents a discount compared to its industry's average Forward P/E of 11.39.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Published in