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North American Construction (NOA) Gains But Lags Market: What You Should Know

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North American Construction (NOA - Free Report) closed at $4.97 in the latest trading session, marking a +1.84% move from the prior day. The stock lagged the S&P 500's daily gain of 9.38%. At the same time, the Dow added 11.37%, and the tech-heavy Nasdaq gained 8.12%.

Coming into today, shares of the heavy construction and mining services company had lost 52.44% in the past month. In that same time, the Construction sector lost 46.37%, while the S&P 500 lost 32.94%.

Wall Street will be looking for positivity from NOA as it approaches its next earnings report date. On that day, NOA is projected to report earnings of $0.44 per share, which would represent year-over-year growth of 12.82%. Meanwhile, our latest consensus estimate is calling for revenue of $148.14 million, up 5.66% from the prior-year quarter.

NOA's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $571.90 million. These results would represent year-over-year changes of +22.12% and +5.51%, respectively.

Investors should also note any 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. 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. The Zacks Consensus EPS estimate has moved 9.8% lower within the past month. NOA is currently a Zacks Rank #4 (Sell).

Investors should also note NOA's current valuation metrics, including its Forward P/E ratio of 3.54. Its industry sports an average Forward P/E of 6.96, so we one might conclude that NOA is trading at a discount comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 238, which puts it in the bottom 7% 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.

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