North American Construction (NOA) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, North American Construction (NOA) closed at $10.69, marking a -0.56% move from the previous day. This change lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, added 0.57%.
Heading into today, shares of the heavy construction and mining services company had lost 11.38% over the past month, lagging the Construction sector's gain of 0.03% and the S&P 500's gain of 0.1% in that time.
NOA will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $122.63 million, up 99.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.35 per share and revenue of $520.38 million, which would represent changes of +221.43% and +64.35%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for NOA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NOA currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, NOA is currently trading at a Forward P/E ratio of 7.96. This valuation marks a discount compared to its industry's average Forward P/E of 11.2.
The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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