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Why the Market Dipped But CRH (CRH) Gained Today

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CRH (CRH - Free Report) ended the recent trading session at $81.22, demonstrating a +0.43% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.23% for the day. On the other hand, the Dow registered a loss of 0.91%, and the technology-centric Nasdaq increased by 0.1%.

The building material company's stock has dropped by 17.07% in the past month, falling short of the Construction sector's loss of 7.56% and the S&P 500's loss of 12.13%.

Market participants will be closely following the financial results of CRH in its upcoming release. It is anticipated that the company will report an EPS of -$0.06, marking a 200% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.05 billion, reflecting a 7.9% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.83 per share and a revenue of $38 billion, demonstrating changes of +8.16% and +6.82%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for CRH. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. CRH presently features a Zacks Rank of #3 (Hold).

Looking at valuation, CRH is presently trading at a Forward P/E ratio of 13.88. This valuation marks a discount compared to its industry's average Forward P/E of 14.51.

We can additionally observe that CRH currently boasts a PEG ratio of 1.12. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CRH in the coming trading sessions, be sure to utilize Zacks.com.


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