Construction Partners (ROAD) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Construction Partners (ROAD) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - A strong correlation exists between earnings estimate revisions and near-term stock price movements, with institutional investors playing a role in this relationship [4][6]. Company Performance and Outlook - The upgrade for Construction Partners suggests an improvement in the company's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - For the fiscal year ending September 2025, Construction Partners is expected to earn $2.03 per share, with a 10.7% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of generating significant returns for top-ranked stocks [7][9]. - The upgrade to Zacks Rank 2 places Construction Partners in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10].