Latest news with #ROAD
Yahoo
6 days ago
- Business
- Yahoo
Are You Looking for a Top Momentum Pick? Why Construction Partners (ROAD) is a Great Choice
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Construction Partners (ROAD), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Construction Partners currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Let's discuss some of the components of the Momentum Style Score for ROAD that show why this road and highway construction company shows promise as a solid momentum pick. A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For ROAD, shares are up 2.1% over the past week while the Zacks Building Products - Miscellaneous industry is up 0.06% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 15.7% compares favorably with the industry's 2.55% performance as well. While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Construction Partners have risen 49.11%, and are up 84.36% in the last year. In comparison, the S&P 500 has only moved 3.59% and 14.21%, respectively. Investors should also take note of ROAD's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, ROAD is averaging 501,201 shares for the last 20 days. The Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with ROAD. Over the past two months, 3 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ROAD's consensus estimate, increasing from $1.96 to $2.14 in the past 60 days. Looking at the next fiscal year, 2 estimates have moved upwards while there have been 1 downward revision in the same time period. Given these factors, it shouldn't be surprising that ROAD is a #2 (Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Construction Partners on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Construction Partners, Inc. (ROAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
ROAD Stock Climbs 52% in 3 Months: Should You Buy the Surge or Wait?
Construction Partners, Inc. ROAD shares have soared 52.3% in the past three months, significantly outperforming the Zacks Building Products - Miscellaneous industry, the broader Construction sector and the S&P 500 index. The detailed share price performance can be studied from the chart below. Image Source: Zacks Investment Research The company's vertically integrated business model amid a favorable public infrastructure spending backdrop is driving its prospects in an uncertain macro environment. Moreover, its diverse offerings across products and services bring it closer to several growth opportunities through organic and inorganic moves. Another intriguing aspect of ROAD stock for investors is its bullish fiscal 2025 outlook, which the company raised in its recent earnings the past three months, ROAD stock has also outshone a few of its industry peers, including Armstrong World Industries, Inc. AWI, Installed Building Products, Inc. IBP and Advanced Drainage Systems, Inc. WMS. During the said time frame, the share price performance of Armstrong World has inched up 4.5%, while the same for Installed Building and Advanced Drainage has tumbled 4.4% and 0.2%, respectively. Vertically-Integrated Model: Construction Partners exercises a vertically integrated business model that notably offers it a competitive advantage over its peers and helps in leveraging market opportunities for its profitability. Through vertical integration, the company is able to optimize its supply chain and reduce volatility risks, while increasing supplier flexibility and enhancing its margins in the this strategic business model, ROAD aims to support its ROAD-Map 2027 goals. The targets include annual revenue growth in the range of 15-20% and EBITDA margin expansion in the range of 13-14%.Diversified Growth Opportunities: ROAD's diversified business offerings, including manufacturing and construction services, open doors for several growth opportunities in the market, organically or inorganically. Through organic growth, the company expands its services or facilities in the existing markets via upgrades and similar activities. Inorganically, it engages in acquiring new businesses that complement its existing business and expand its market reach. Furthermore, through greenfield expansion, the company enters new markets and upgrades its vertically-integrated business model by establishing manufacturing revolutionary Lone Star Acquisition, completed on Nov. 1, 2024, proved incremental to ROAD's business. This strategic acquisition of the Texas-based company has enhanced the company's value and expanded its geographic footprint through 10 HMA plants, four aggregate facilities and one liquid asphalt terminal, and accelerated achieving the ROAD-Map 2027 Fiscal 2025 Views: Backed by favorable market fundamentals, Construction Partners has raised its fiscal 2025 outlook, reflecting robust year-over-year growth and inducing investors' the full fiscal year, the company now expects revenues to be between $2.77 billion and $2.83 billion (up from the previous range of $2.66-$2.74 billion), indicating significant 52.2-55.5% year-over-year growth. Adjusted EBITDA is now forecasted between $410 million and $430 million (up from the previous range of $375-$400 million), reflecting year-over-year growth between 85.9% and 94.9%. Adjusted EBITDA margin is now expected in the range of 14.8-15.2% (up from the 14.1-14.6% range expected earlier), reflecting year-over-year growth of 12.1%. ROAD's earnings estimates for fiscal 2025 and 2026 have trended upward in the past 30 days by 10.3% to $2.14 per share and 1.5% to $2.71 per share, respectively. The estimated figures for fiscal 2025 and 2026 reflect 60.9% and 26.5% year-over-year growth, respectively. EPS Trend Image Source: Zacks Investment Research Analysts' sentiments are likely to have been boosted by the favorable market fundamentals and the company's upbeat fiscal 2025 expectations. Technical indicators suggest a continued strong performance for Construction Partners. From the graphical representation given below, it can be observed that ROAD stock is riding above both the 50-day simple moving average (SMA) and the 200-day SMA, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in ROAD's financial health and prospects. 50 & 200-Day SMA Image Source: Zacks Investment Research Construction Partners is currently trading at a premium compared with its industry peers on a forward 12-month price-to-earnings (P/E) ratio basis. The premium valuation indicates that the stock is trading above its industry peers, making it difficult for investors to figure out a suitable entry point. Image Source: Zacks Investment Research However, the overvaluation of ROAD stock compared with its industry peers indicates its strong potential in the market, given the favorable trends backing it up. Per the discussion above, this civil infrastructure company's prospects are gaining from its vertically-integrated business model, which is exceptionally aiding it in reducing supply-chain risks and expanding its margins. Especially in the current uncertain macro environment, such a strategic business model is coming in handy for the company against favorable public infrastructure spending must consider all the tailwinds against the probable market headwinds when deciding on any action to be taken in favor of ROAD after considering the favorable fundamentals and the trends of the technical indicators, this Zacks Rank #2 (Buy) stock is a decent choice to be added to the portfolio for now. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report Construction Partners, Inc. (ROAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Mineral Road to Acquire Swedish Tungsten Assets, Announces Financing
Vancouver, British Columbia--(Newsfile Corp. - May 23, 2025) - Mineral Road Discovery Inc. (CSE: ROAD) (the "Company" or "ROAD") announces that it has entered into a binding agreement to acquire the Bergslagen Tungsten Project in Sweden. The Bergslagen Tungsten Project, Sweden consists of eight mineral concessions located in the Bergslagen region near the municipality of Ludvika, which is approximately 220 km from Stockholm. Each of the properties have had some level of historic production for tungsten, iron or molybdenum with the oldest mines dating back to the 17th century. There has been a considerable amount of work performed in the region and as such there is a significant amount of historical information available on the properties, however, neither of the properties have been explored using modern techniques and all have untested prospects. The Bergslagen region has a long history of mining and smelting that dates back over a millennium. Within the municipality of Ludvika alone, there are more than 550 historical mines registered. There is an extensive network of paved highways and rail services in the region and the national power grid passes through or nearby all of the properties. The nearest seaport is Gävle, approximately 155 km northeast of the properties. A large network of unpaved roads allows easy access to large portions of the properties. An initial focus for the Company will be the Yxsjöberg permit. The Yxsjöberg mine exploited a number of deposits that made it the most important producer of tungsten in Sweden. The mine was in operation by the State-owned mining company until 1989. All properties are covered by low altitude airborne surveys consisting of total magnetic field, VLF and spectrometry, carried out by the Geological Survey of Sweden. In addition, regional biogeochemical sampling has been carried out. During the 1970s and 1980s, a large number of heavy minerals in till samples were taken, both by the Geological Survey and a state-owned mining company, LKAB. Drilling has been conducted on several targets within the permitted areas. ROAD will first ensure that all historical data is digitally compiled and then begin detailed exploration work tailored to each permit. Terms ROAD has entered into a definitive acquisition agreement with 1521480 B.C. Ltd. (the "Vendor") dated May 22, 2025 to acquire a 100% interest in NewPeak Sweden OY ("NewPeak Sweden"), which holds the eight exploration permits in central Sweden, in consideration of the issuance of 2,700,000 ROAD Shares to the original property owner (the "Previous Owner"), and the payment to the Vendor of $300,000 in cash and/or marketable securities owned by ROAD. An additional milestone payment of $250,000 will be payable to the Previous Owner if exploration expenditures exceed $250,000 within 30 months of closing, with an additional $750,000 payment upon the reporting of a JORC inferred resource of a minimum of 3mt at 0.3% WOBE. The milestone payments can be made by cash or ROAD shares, at the option of the Company. The Vendor is owned by a trust that is controlled by Damien Reynolds (the "Joint Actor") who is a director of ROAD and owns and controls, directly and indirectly, an aggregate of 53,112,150 ROAD shares representing approximately 57.3% of the issued and outstanding ROAD Shares as at the date hereof. Accordingly, the acquisition of an interest in NewPeak Sweden will be considered a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions under sections 5.5(a) and 5.7(1)(a) of MI 61-101 from the formal valuation and minority shareholder approval requirements, as the amount of the consideration paid to the Vendor does not exceed 25% of the Company's market capitalization as determined in accordance with MI 61-101. FINANCING ROAD announces a non-brokered private placement of 666,666 shares at a price of $0.075 per share for proceeds of $50,000 (the "Private Placement"). Proceeds will be used for general working capital. The Private Placement is subject to approval by the Canadian Securities Exchange. All shares issued upon closing of the Private Placement will be subject to a four month hold period in accordance with applicable securities laws. This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements. FOR FURTHER INFORMATION CONTACT: Jason CubittChief Executive OfficerDamien ReynoldsExecutive Chairman Mineral Road Discovery 778 819 1870 About Mineral Road Discovery Mineral Road Discovery is an investor in exploration. By focusing on a combination of top-down thematics and significant technical and financial expertise, we can manage risks better to provide exceptional shareholder value. Cautionary Note Regarding Forward Looking Information This news release contains "forward-looking information" and "forward-looking statements" (collectively, forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "proposed", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, completion of the transactions described herein on the terms set out, or at all; receipt of all required regulatory approvals; the Company's objectives, goals and exploration activities proposed to be conducted on the properties to be acquired by the Company; future growth potential of the Company, including whether any proposed exploration programs at any of the Company's properties will be successful; exploration results; and future exploration plans and costs and financing availability. These forward-looking statements are based on reasonable assumptions and estimates of management of the Company at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors, among other things, include: the ability to complete the proposed transactions on the terms disclosed, including receipt of all required regulatory approvals and any other consents; the expected benefits to the Company relating to the exploration proposed to be conducted at the properties to be acquired by the Company; failure to identify any mineral resources or significant mineralization; the preliminary nature of metallurgical test results; uncertainties relating to the availability and costs of financing needed in the future, including to fund any exploration programs on the Company's properties; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures, cave-ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations that may impose restrictions on mining and mineral exploration; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); the unlikelihood that properties that are explored are ultimately developed into producing mines; geological factors; actual results of current and future exploration; changes in project parameters as plans continue to be evaluated; soil sampling results being preliminary in nature and are not conclusive evidence of the likelihood of a mineral deposit; title to properties; and those factors described in the most recently filed management's discussion and analysis of the Company. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements and information. There can be no assurance that forward-looking information, or the material factors or assumptions used to develop such forward-looking information, will prove to be accurate. The Company does not undertake to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law. Neither the Canadian Securities Exchange nor its Regulation Service Provider (as the term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy of accuracy of this news release. To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
Construction Partners (ROAD) Fell Amid Profit Taking and General Industry Weakness
Conestoga Capital Advisors, an asset management company, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets started the year with a rally due to optimism about a strong economy and expectations of moderating inflation and lower interest rates. However, concerns over slowing earnings from major Technology companies, geopolitical tensions, and an upcoming announcement on tariffs led to a sharp decline in equities by the end of the first quarter. Investors sought safety, driving U.S. Treasury yields down. The Conestoga Small Cap Composite returned -11.35% (net) in the first quarter compared to the Russell 2000 Growth Index's -11.12% return. The Conestoga SMid Cap Composite returned -5.73% compared to the Russell 2500 Growth Index's -10.80% return. The Conestoga Micro-Cap Composite returned -8.24% vs the Russell Microcap Growth Index's return of -17.75%. Finally, the Conestoga Mid Cap Composite returned 0.96% (net), compared to the Russell Midcap Growth Index's -7.12% return. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025. In its first-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that constructs and maintains roadways. The one-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 12.15%, and its shares gained 53.09% of their value over the last 52 weeks. On April 28, 2025, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $80.60 per share with a market capitalization of $4.51 billion. Conestoga Capital Advisors stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its Q1 2025 investor letter: "After being one of the portfolio's leading contributor in six of the past seven quarters, shares in Construction Partners, Inc. (NASDAQ:ROAD) pulled back during the first quarter of 2025. This was likely due to some profit- taking and general weakness in infrastructure stocks after strong gains in 2024. ROAD was also the subject of a short report in late January, which we found to be lacking in terms of new information. ROAD reported strong fiscal first quarter results, with the quarter well ahead of estimates and backlog again hitting a record. Management raised guidance for the year, a positive sign that the strong demand it is witnessing should continue." An aerial view of a bridge under construction with workers continuing their work despite the early morning light. Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the fourth quarter compared to 16 in the third quarter. Construction Partners, Inc.'s (NASDAQ:ROAD) revenue was $561.6 million in the fiscal first quarter of 2025, an increase of 41.6% compared to the same quarter a year ago. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered Construction Partners, Inc. (NASDAQ:ROAD) and shared Wasatch Small Cap Growth Strategy's views on the company in the previous quarter. Construction Partners, Inc. (NASDAQ: ROAD) positively impacted Conestoga Capital Advisors' performance last quarter, fueled by high demand in the road maintenance and infrastructure sector. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
21-04-2025
- Business
- Yahoo
Is Construction Partners, Inc. (NASDAQ:ROAD) Potentially Undervalued?
Construction Partners, Inc. (NASDAQ:ROAD), is not the largest company out there, but it saw a double-digit share price rise of over 10% in the past couple of months on the NASDAQGS. Shareholders may appreciate the recent price jump, but the company still has a way to go before reaching its yearly highs again. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Let's take a look at Construction Partners's outlook and value based on the most recent financial data to see if the opportunity still exists. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. According to our valuation model, Construction Partners seems to be fairly priced at around 12.73% above our intrinsic value, which means if you buy Construction Partners today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $68.70, there's only an insignificant downside when the price falls to its real value. Furthermore, Construction Partners's low beta implies that the stock is less volatile than the wider market. Check out our latest analysis for Construction Partners Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. In the upcoming year, Construction Partners' earnings are expected to increase by 99%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? It seems like the market has already priced in ROAD's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on ROAD, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Be aware that Construction Partners is showing 2 warning signs in our investment analysis and 1 of those doesn't sit too well with us... If you are no longer interested in Construction Partners, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
