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North American Construction (NOA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, North American Construction (NOA) closed at $10.80, marking a +1.12% move from the previous day. This move outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.48%.

Coming into today, shares of the heavy construction and mining services company had lost 3.87% in the past month. In that same time, the Construction sector gained 4.32%, while the S&P 500 gained 3.62%.

Wall Street will be looking for positivity from NOA as it approaches its next earnings report date. Meanwhile, our latest consensus estimate is calling for revenue of $122.63 million, up 99.11% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.35 per share and revenue of $520.38 million. These totals would mark changes of +221.43% and +64.35%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for NOA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOA is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, NOA is currently trading at a Forward P/E ratio of 7.91. This valuation marks a discount compared to its industry's average Forward P/E of 11.87.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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.

To follow NOA in the coming trading sessions, be sure to utilize Zacks.com.


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