ROAD Should I Buy
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Construction Partners Inc (ROAD) is not an ideal buy for a beginner, long-term investor at this moment. While the stock shows strong technical momentum and positive analyst sentiment, the financial performance in the latest quarter indicates significant challenges with a sharp decline in net income and EPS. Additionally, there are no recent news catalysts or congress trading activity to support a strong buy decision. The investor may consider waiting for improved financial performance or a more favorable entry point.
The stock exhibits bullish momentum with MACD above 0 and expanding positively, RSI at 83.206 indicating overbought conditions, and SMA_5 > SMA_20 > SMA_200 confirming a strong uptrend. However, the RSI suggests caution as the stock may be overextended. Key resistance levels are at R1: 137.368 and R2: 145.231, with support at S1: 111.916.
Strong revenue growth in the latest quarter (up 44.14% YoY).
Bullish technical indicators and strong price momentum.
Positive analyst sentiment with raised price targets and Outperform/Buy ratings.
Significant decline in net income (-663.91% YoY) and EPS (-616.67% YoY) in the latest quarter.
Overbought RSI indicating potential short-term pullback.
Lack of recent news or event-driven catalysts.
No significant hedge fund, insider, or congress trading activity.
In Q1 2026, revenue increased significantly by 44.14% YoY to $809.47M. However, net income dropped sharply by -663.91% YoY to $17.21M, and EPS fell by -616.67% YoY to 0.31. Gross margin improved slightly to 15.01%, up 10.12% YoY.
Analysts are positive on the stock. Baird recently raised its price target to $142 from $124, citing strong quarterly results and maintaining an Outperform rating. However, BofA lowered its price target to $115 from $120, citing industry uncertainty but maintained a Buy rating due to the company's growth potential and consolidation strategy.
