Back to top

Image: Bigstock

North American Construction (NOA) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

North American Construction (NOA - Free Report) closed the most recent trading day at $12.70, moving +0.08% from the previous trading session. This change lagged the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.3%.

Coming into today, shares of the heavy construction and mining services company had gained 6.82% in the past month. In that same time, the Construction sector gained 6.13%, while the S&P 500 gained 2.99%.

NOA will be looking to display strength as it nears its next earnings release. On that day, NOA is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 675%. Our most recent consensus estimate is calling for quarterly revenue of $124.79 million, up 91.57% from the year-ago period.

NOA's full-year Zacks Consensus Estimates are calling for earnings of $1.38 per share and revenue of $547.58 million. These results would represent year-over-year changes of +228.57% and +72.94%, respectively.

Investors might also notice recent changes to analyst estimates for NOA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. NOA is currently a Zacks Rank #1 (Strong Buy).

Investors should also note NOA's current valuation metrics, including its Forward P/E ratio of 9.23. Its industry sports an average Forward P/E of 12.14, 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 group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


North American Construction Group Ltd. (NOA) - free report >>

Published in