Construction Partners, Inc. ROAD shares rallied 13.4% in the last trading session to close at $84.70. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3% gain over the past four weeks.

The upside can be attributed to the company’s announcement to acquire Asphalt Inc., LLC. ROAD recently entered a deal to acquire Asphalt Inc., LLC doing business as Lone Star Paving, a vertically integrated asphalt manufacturing and paving company headquartered in Austin, TX. This acquisition is expected to enhance Construction Partners' earnings and contribute $530 million in revenues and $120 million in Adjusted EBITDA for fiscal 2025.

Also. the company announced preliminary results for fiscal 2024 and introduced guidance for fiscal 2025.

This road and highway construction company is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +13.6%. Revenues are expected to be $559.7 million, up 17.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Construction Partners, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ROAD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Construction Partners is part of the Zacks Building Products - Miscellaneous industry. Advanced Drainage Systems (WMS), another stock in the same industry, closed the last trading session 1.7% lower at $154.68. WMS has returned 3.2% in the past month.

For Advanced Drainage , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.93. This represents a change of +12.9% from what the company reported a year ago. Advanced Drainage currently has a Zacks Rank of #4 (Sell).

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