CRH (CRH) Ascends While Market Falls: Some Facts to Note

CRH (CRH) ended the recent trading session at $106.52, demonstrating a +2.01% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.37%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 0.84%.

Heading into today, shares of the building material company had lost 14.05% over the past month, lagging the Construction sector's loss of 10.8% and the S&P 500's loss of 3.7%.

The investment community will be paying close attention to the earnings performance of CRH in its upcoming release. The company is forecasted to report an EPS of $0.28, showcasing a 333.33% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $7.33 billion, showing a 8.51% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $5.97 per share and a revenue of $40.17 billion, demonstrating changes of +7.18% and +7.27%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for CRH. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.53% fall in the Zacks Consensus EPS estimate. At present, CRH boasts a Zacks Rank of #3 (Hold).

In terms of valuation, CRH is currently trading at a Forward P/E ratio of 17.5. This signifies a premium in comparison to the average Forward P/E of 17.46 for its industry.

We can also see that CRH currently has a PEG ratio of 1.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Building Products - Miscellaneous industry held an average PEG ratio of 1.34.

The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 191, positioning it in the bottom 23% 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.

To follow CRH in the coming trading sessions, be sure to utilize Zacks.com.

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

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