ROAD Should I Buy
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Construction Partners Inc (ROAD) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock is currently undervalued due to a recent selloff tied to crude oil fears, but analysts have upgraded it with higher price targets. The company's strong revenue growth, momentum score, and positive industry outlook make it a compelling investment opportunity.
The MACD is positive at 0.785, indicating bullish momentum, though it is contracting. RSI is neutral at 45.897, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot level of 111.927, with resistance at 118.349 and support at 105.506. Overall, the technical indicators suggest a neutral to slightly bullish outlook.
Analysts have upgraded the stock with higher price targets, citing undervaluation and strong industry prospects.
The company recorded an 85.3% earnings surprise and received an A momentum score.
Revenue increased by 44.14% YoY in Q1 2026, demonstrating strong growth.
Positive outlook for the Surface Transportation bill, estimated at $500B-$600B, which could benefit the company.
Net income and EPS have significantly declined YoY, with net income down -663.91% and EPS down -616.67%.
Insider and hedge fund trading trends are neutral, showing no significant activity.
No recent congress trading data to indicate political interest in the stock.
In Q1 2026, revenue grew by 44.14% YoY to $809.47M, showing strong top-line growth. However, net income dropped by -663.91% YoY to $17.21M, and EPS fell by -616.67% YoY to 0.31. Gross margin improved by 10.12% YoY to 15.01%, indicating better operational efficiency despite the drop in profitability.
Analysts are bullish on the stock. B. Riley upgraded the stock to Buy with a price target of $135, citing undervaluation and limited cost pressures. BofA raised the price target to $147, highlighting strong Q1 results. Baird also raised the price target to $142, emphasizing the company's strong quarterly performance and business model resilience.
