Construction Partners (NASDAQ:ROAD) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Construction Partners has been upgraded to a "strong-buy" rating by Zacks Research, indicating positive expectations for the stock's performance.
• The stock currently holds a consensus rating of "Buy" from analysts, with a target price of $112.33.
• Despite a 50.5% increase in quarterly revenue year-over-year, the company reported earnings per share (EPS) of $0.81, missing estimates by $0.06.

Construction Partners (NASDAQ:ROAD - Get Free Report) was upgraded by research analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on ROAD. Baird R W upgraded Construction Partners from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 8th. Robert W. Baird set a $122.00 target price on Construction Partners and gave the stock an "outperform" rating in a research report on Friday, August 8th. Raymond James Financial reissued a "strong-buy" rating on shares of Construction Partners in a research note on Friday, August 8th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Construction Partners in a research note on Saturday, September 27th. Three analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $112.33.

Construction Partners Stock Performance

Shares of ROAD opened at $121.79 on Monday. The company has a quick ratio of 1.20, a current ratio of 1.47 and a debt-to-equity ratio of 1.63. The business has a 50-day simple moving average of $118.73 and a two-hundred day simple moving average of $102.94. The stock has a market cap of $6.83 billion, a price-to-earnings ratio of 88.90, a PEG ratio of 1.07 and a beta of 0.98. Construction Partners has a 52 week low of $64.79 and a 52 week high of $138.90.

Construction Partners (NASDAQ:ROAD - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported $0.81 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.06). The company had revenue of $779.28 million during the quarter, compared to analysts' expectations of $810.47 million. Construction Partners had a return on equity of 12.24% and a net margin of 3.04%.The business's quarterly revenue was up 50.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.59 EPS. Construction Partners has set its FY 2025 guidance at EPS. On average, analysts expect that Construction Partners will post 1.96 EPS for the current year.

Institutional Investors Weigh In On Construction Partners

Institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC lifted its stake in shares of Construction Partners by 33.6% in the 2nd quarter. GAMMA Investing LLC now owns 1,164 shares of the company's stock valued at $124,000 after purchasing an additional 293 shares during the last quarter. Teacher Retirement System of Texas bought a new stake in shares of Construction Partners in the 1st quarter valued at approximately $491,000. Asset Management One Co. Ltd. lifted its stake in shares of Construction Partners by 15.5% in the 1st quarter. Asset Management One Co. Ltd. now owns 76,119 shares of the company's stock valued at $5,471,000 after purchasing an additional 10,226 shares during the last quarter. LPL Financial LLC lifted its stake in shares of Construction Partners by 16.3% in the 1st quarter. LPL Financial LLC now owns 45,371 shares of the company's stock valued at $3,261,000 after purchasing an additional 6,365 shares during the last quarter. Finally, HWG Holdings LP bought a new stake in shares of Construction Partners in the 2nd quarter valued at approximately $2,260,000. 94.83% of the stock is owned by institutional investors.

Construction Partners Company Profile

Construction Partners, Inc, a civil infrastructure company, constructs and maintains roadways in Alabama, Florida, Georgia, North Carolina, South Carolina, and Tennessee. The company provides various products and services to public and private infrastructure projects, such as highways, roads, bridges, airports, and commercial and residential developments.

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