Core Viewpoint - Heidelberg Materials AG Unsponsored ADR (HDLMY) is currently viewed as a better value opportunity compared to Construction Partners (ROAD) based on various valuation metrics [1][7]. Valuation Metrics - HDLMY has a forward P/E ratio of 15.88, while ROAD has a significantly higher forward P/E of 48.55 [5]. - The PEG ratio for HDLMY is 1.23, which is comparable to ROAD's PEG ratio of 1.31, indicating that HDLMY may offer better value relative to its expected earnings growth [5]. - HDLMY's P/B ratio stands at 2.16, contrasting with ROAD's P/B ratio of 7.3, further supporting the notion that HDLMY is undervalued [6]. Earnings Outlook - Both HDLMY and ROAD hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - Despite both companies having solid earnings prospects, HDLMY's valuation metrics suggest it is the superior value option at this time [7].

Core Viewpoint - The partnership between Spectrum and Nexar aims to enhance road intelligence through improved network connectivity, enabling faster data delivery and insights for vehicle safety and autonomy [1][2]. Group 1: Partnership Details - Spectrum provides Nexar access to its extensive managed wireless network, which includes over 17 million secure wireless access points, facilitating efficient data transfer [3]. - The collaboration is expected to scale Nexar's data delivery capabilities across the United States, transforming everyday vehicles into data-generating assets for various applications [2][5]. Group 2: Technological Advancements - Nexar's AI platform captures anonymized road insights that can be utilized by insurers, mobility platforms, and cities to enhance safety and operational efficiency [2]. - The partnership is positioned to support time-sensitive, high-volume data transfer, which is crucial for the development of autonomous vehicle technologies [3][4]. Group 3: Industry Impact - This collaboration reflects Spectrum's strategy to leverage its network through innovative partnerships, contributing to the evolution of connected mobility solutions [4]. - The partnership aligns with Nexar's ongoing expansion into commercial fleets and urban environments, promoting the use of data-rich vehicles for insurance, mapping, and autonomous vehicle development [5].

Core Insights - Kellanova's survey reveals that Cheez-It and Pringles are the top favorite snack brands for summer road trips among U.S. adults [1][2][3] - The survey indicates that snacking preferences vary significantly across different generations and regions [3][4][6] Generational Snacking Preferences - Gen Z prefers adventurous flavors like sour and spicy, often traveling with friends and valuing shareability [6] - Millennials gravitate towards tangy flavors, focusing on family-friendly snacks, with 40% of respondents noting their kids snack frequently during trips [6] - Gen X enjoys a variety of snacks, favoring sweet, salty, and chocolatey options, typically traveling with a buddy [6] - Boomers also prefer salty, sweet, and chocolatey snacks, often traveling solo or with a partner, and are more likely to purchase snacks during stops [6] Regional Snacking Habits - The South tends to stock up on salty, sweet, and chocolatey snacks during their journeys [6] - Northeasterners are more inclined to choose creamy-flavored snacks compared to Midwesterners, with one-third of Midwesterners ranking cheesy snacks in their top three [6] - Residents of the Mountain West and Pacific Coast are less likely to plan snacks, preferring whatever is available, but still favor salty, sweet, and chocolatey flavors [6] Company Overview - Kellanova is a leader in global snacking, with a diverse portfolio of brands including Pringles, Cheez-It, and Pop-Tarts, and reported net sales of $13 billion in 2023 [7]

Core Viewpoint - Construction Partners (ROAD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Rising earnings estimates for Construction Partners suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Recent Performance and Projections - For the fiscal year ending September 2025, Construction Partners is expected to earn $2.17 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 10.8% over the past three months [8]. Zacks Rating System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The Zacks Rank 2 upgrade places Construction Partners in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Construction Partners (ROAD) currently holding a Momentum Style Score of B [2][3] Group 2: Performance Metrics of Construction Partners - Construction Partners has a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3] - Over the past week, ROAD shares increased by 2.1%, while the Zacks Building Products - Miscellaneous industry rose by only 0.06% [5] - In the last quarter, ROAD shares surged by 49.11%, and over the past year, they have risen by 84.36%, significantly outperforming the S&P 500's gains of 3.59% and 14.21% respectively [6] Group 3: Trading Volume and Earnings Outlook - ROAD's average 20-day trading volume is 501,201 shares, which is a bullish indicator when combined with rising stock prices [7] - In the past two months, three earnings estimates for ROAD have increased, raising the consensus estimate from $1.96 to $2.14 [9] - For the next fiscal year, two estimates have moved upwards, while one has been revised downwards [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, Construction Partners is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Viewpoint - Construction Partners, Inc. (ROAD) has experienced a significant share price increase of 52.3% over the past three months, outperforming its industry, sector, and the S&P 500 index [1][2]. Group 1: Business Model and Growth Prospects - The company's vertically integrated business model provides a competitive advantage, optimizing the supply chain and enhancing profitability while reducing volatility risks [4][20]. - ROAD aims for annual revenue growth of 15-20% and EBITDA margin expansion of 13-14% as part of its ROAD-Map 2027 goals [5]. - The company has diversified its offerings, allowing for both organic growth through service expansion and inorganic growth via acquisitions, enhancing its market reach [6][20]. Group 2: Recent Developments and Financial Outlook - The Lone Star Acquisition, completed on November 1, 2024, has expanded ROAD's geographic footprint and contributed positively to its business [7][9]. - For fiscal 2025, ROAD expects revenues between $2.77 billion and $2.83 billion, reflecting a year-over-year growth of 52.2-55.5% [10]. - Adjusted EBITDA is forecasted to be between $410 million and $430 million, indicating a year-over-year growth of 85.9% to 94.9% [10]. Group 3: Earnings Estimates and Market Sentiment - Earnings estimates for fiscal 2025 and 2026 have increased by 10.3% and 1.5%, respectively, reflecting strong growth expectations of 60.9% and 26.5% year-over-year [11][12]. - Technical indicators show that ROAD stock is trading above both the 50-day and 200-day simple moving averages, indicating a bullish trend and positive market sentiment [13][20]. Group 4: Valuation and Investment Considerations - ROAD is currently trading at a premium compared to its industry peers based on a forward 12-month price-to-earnings (P/E) ratio, suggesting strong market potential despite challenges in determining a suitable entry point for investors [17][19]. - The favorable fundamentals and technical trends support the view that ROAD is a solid investment choice in the current market environment [21].

Core Insights - Construction Partners (ROAD) is experiencing solid improvement in earnings estimates, which may lead to continued short-term price momentum [1][2] - The rising trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2][3] Current-Quarter Estimate Revisions - The company is projected to earn $0.93 per share for the current quarter, indicating a year-over-year increase of +57.63% [6] - Over the past 30 days, one estimate has been revised upward with no negative revisions, resulting in a 7.75% increase in the Zacks Consensus Estimate [6] Current-Year Estimate Revisions - For the full year, Construction Partners is expected to earn $2.14 per share, representing a +60.9% change from the previous year [7] - The consensus estimate has increased by 10.29% due to three upward revisions and no negative revisions in the past month [7][8] Zacks Rank and Performance - The favorable estimate revisions have led to a Zacks Rank 2 (Buy) for Construction Partners, indicating strong potential for outperformance [9] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9] Recent Stock Performance - Construction Partners shares have increased by 18.8% over the past four weeks, suggesting investor confidence in its earnings growth prospects [10]

Group 1 - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - Construction Partners (ROAD) currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The Zacks Rank for Construction Partners is 2 (Buy), suggesting a favorable outlook for the stock [3] Group 2 - ROAD shares have increased by 6.9% over the past week, while the Zacks Building Products - Miscellaneous industry remained flat during the same period [5] - Over the past quarter, ROAD shares have risen by 31.55%, and by 87.65% over the last year, significantly outperforming the S&P 500, which moved -3.42% and 14.16% respectively [6] - The average 20-day trading volume for ROAD is 480,769 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3 - Recent earnings estimate revisions for ROAD show positive trends, with 3 estimates moving higher and none lower, increasing the consensus estimate from $1.96 to $2.14 over the past 60 days [9] - For the next fiscal year, 2 estimates have increased while 1 has decreased, reflecting a generally positive earnings outlook [9] Group 4 - Given the strong performance metrics and positive earnings outlook, ROAD is positioned as a solid momentum pick for investors [11]

Construction Partners Spring 2025 Investor Presentation Forward-Looking Statements Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1939 and 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "seek" "continue," "estimate," "predict," "potential," "targeting," "may," "may," "will," "expect," "should," "anticipate," ...

Financial Data and Key Metrics Changes - Revenue for Q2 fiscal 2025 was $571.7 million, representing a 54% increase year-over-year [16] - Adjusted EBITDA grew by 135% to $69.3 million, with an adjusted EBITDA margin of 12.1%, up from 7.9% in the same quarter last year [18] - Net income was $4.2 million, compared to a net loss of $1.1 million in the same quarter last year [18] - General and administrative (G&A) expenses as a percentage of total revenue decreased to 8.2% from 9.7% year-over-year [17] Business Line Data and Key Metrics Changes - The revenue mix for the quarter included 7% organic revenue growth and 47% from recent acquisitions [16] - The company reported a project backlog of $2.84 billion, indicating strong demand for services [19] Market Data and Key Metrics Changes - The company continues to benefit from healthy federal and state project funding in the Sunbelt states, with no signs of degradation in market conditions [10] - The IIJA and state funding are expected to provide a healthy bidding environment for public market customers [11] Company Strategy and Development Direction - The company is focused on both organic and acquisitive growth, with a strong acquisition pipeline and plans to expand into new states [12][13] - The strategic goal is to achieve top-line growth of 15% to 20% annually and EBITDA expansion of 50 basis points per year through various margin levers [13] Management's Comments on Operating Environment and Future Outlook - Management noted that they have not experienced project delays or cancellations despite broader macroeconomic uncertainties [24] - The company is optimistic about the future, citing strong economic expansion and favorable demographic trends in Tennessee as growth drivers [9] Other Important Information - Capital expenditures for Q2 were $41.4 million, with total expected capital expenditures for fiscal 2025 in the range of $130 million to $140 million [21] - The company aims to reduce its debt to trailing twelve months EBITDA ratio to approximately 2.5 times in the next four quarters [20] Q&A Session Summary Question: Are there any project delays or cancellations due to macroeconomic uncertainty? - Management stated they are experiencing business as usual with no delays or cancellations noted [24] Question: What are the margin differentials in recent acquisitions? - Management highlighted that the recent acquisition of PRI has a margin profile in the mid-teens, which is beneficial for the company [27] Question: How is capital allocation prioritized in 2025? - The company plans to pay down debt while also pursuing smart acquisitions to support growth [34] Question: What is the revenue contribution from M&A? - Approximately $150 million to $160 million in revenue is expected to carry over into 2026 from recent acquisitions [47] Question: Are there any inflation-related impacts from tariffs? - Management indicated that tariffs have not been a significant issue, as most supply chain inputs are sourced domestically [54] Question: How does the backlog compare to recognized profit margins? - Backlog margins are healthy, and the company typically finds ways to grow margins during project execution [78]