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Construction Partners (ROAD) Stock Sinks As Market Gains: Here's Why

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Construction Partners (ROAD - Free Report) closed the latest trading day at $39.91, indicating a -0.84% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.63% for the day. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.39%.

Shares of the road and highway construction company witnessed a gain of 15.1% over the previous month, beating the performance of the Construction sector with its loss of 6.52% and the S&P 500's loss of 3.39%.

The upcoming earnings release of Construction Partners will be of great interest to investors. The company's upcoming EPS is projected at $0.52, signifying a 108% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $465.3 million, reflecting a 18.38% rise from the equivalent quarter last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Construction Partners. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 9.91% higher. At present, Construction Partners boasts a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Construction Partners is currently exchanging hands at a Forward P/E ratio of 31.57. For comparison, its industry has an average Forward P/E of 14.51, which means Construction Partners is trading at a premium to the group.

The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 26, this industry ranks in the top 11% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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