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Construction Partners (ROAD) Stock Jumps 7.1%: Will It Continue to Soar?

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Construction Partners (ROAD - Free Report) shares rallied 7.1% in the last trading session to close at $38.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.3% gain over the past four weeks.

Shares of Construction Partners were appreciated after the company reported preliminary results for fiscal 2023. Revenues for fiscal 2023 are anticipated to be between $1.547 billion and $1.557 billion. In the prior-year quarter it reported revenues of $1.30 billion. Additionally, it also introduced fiscal 2024 outlook. Revenues are expected in the range of $1.750-$1.825 billion.

This road and highway construction company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +96%. Revenues are expected to be $465.3 million, up 18.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Construction Partners, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ROAD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Construction Partners is part of the Zacks Building Products - Miscellaneous industry. Otis Worldwide (OTIS - Free Report) , another stock in the same industry, closed the last trading session 0.8% higher at $80.06. OTIS has returned -5.9% in the past month.

For Otis Worldwide, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.87. This represents a change of +8.8% from what the company reported a year ago. Otis Worldwide currently has a Zacks Rank of #2 (Buy).


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