Shares of Construction Partners (ROAD) have been strong performers lately, with the stock up 29.3% over the past month. The stock hit a new 52-week high of $104.53 in the previous session. Construction Partners has gained 16.8% since the start of the year compared to the -1.4% move for the Zacks Construction sector and the -5.9% return for the Zacks Building Products - Miscellaneous industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 9, 2025, Construction Partners reported EPS of $0.08 versus consensus estimate of $-0.04.

Valuation Metrics

While Construction Partners has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Construction Partners has a Value Score of C. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 48.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.4X. On a trailing cash flow basis, the stock currently trades at 33.3X versus its peer group's average of 12.4X. Additionally, the stock has a PEG ratio of 1.44. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Construction Partners currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Construction Partners passes the test. Thus, it seems as though Construction Partners shares could have potential in the weeks and months to come.

Story Continues

How Does ROAD Stack Up to the Competition?

Shares of ROAD have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Janus International Group, Inc. (JBI). JBI has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of A.

Earnings were strong last quarter. Janus International Group, Inc. beat our consensus estimate by 62.50%, and for the current fiscal year, JBI is expected to post earnings of $0.65 per share on revenue of $874.6 million.

Shares of Janus International Group, Inc. have gained 35.6% over the past month, and currently trade at a forward P/E of 13.08X and a P/CF of 9.26X.

The Building Products - Miscellaneous industry is in the top 39% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ROAD and JBI, even beyond their own solid fundamental situation.

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This article originally published on Zacks Investment Research (zacks.com).

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