Strength Seen in Construction Partners (ROAD): Can Its 13.4% Jump Turn into More Strength?

Group 1: Company Overview - Construction Partners, Inc. (ROAD) shares increased by 13.4% to close at $84.70, driven by higher trading volume compared to typical sessions [1] - The company announced the acquisition of Asphalt Inc., LLC, which is expected to generate $530 million in revenues and $120 million in Adjusted EBITDA for fiscal 2025 [1] - Preliminary results for fiscal 2024 were announced alongside guidance for fiscal 2025 [1] Group 2: Earnings Expectations - Construction Partners is projected to report quarterly earnings of $0.67 per share, reflecting a year-over-year increase of 13.6% [2] - Expected revenues for the upcoming quarter are $559.7 million, representing a 17.8% increase from the same quarter last year [2] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating stability in earnings expectations [2] Group 3: Industry Context - Construction Partners operates within the Zacks Building Products - Miscellaneous industry, where Advanced Drainage Systems (WMS) is another player, having closed 1.7% lower at $154.68 [2] - Advanced Drainage's consensus EPS estimate is $1.93, showing a year-over-year change of 12.9% [3] - Advanced Drainage currently holds a Zacks Rank of 4 (Sell), contrasting with Construction Partners' Zacks Rank of 3 (Hold) [2][3]