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North American Construction (NOA) Dips More Than Broader Markets: What You Should Know

In the latest trading session, North American Construction (NOA) closed at $10.62, marking a -0.84% move from the previous day. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq lost 0.24%.

Prior to today's trading, shares of the heavy construction and mining services company had lost 4.12% over the past month. This has lagged the Construction sector's gain of 5.1% and the S&P 500's gain of 4.13% in that time.

NOA will be looking to display strength as it nears its next earnings release. Our most recent consensus estimate is calling for quarterly revenue 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 recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. NOA currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, NOA is holding a Forward P/E ratio of 7.93. Its industry sports an average Forward P/E of 11.45, so we one might conclude that NOA is trading at a discount comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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