CRH (CRH) Laps the Stock Market: Here's Why

CRH (CRH) closed at $104.93 in the latest trading session, marking a +1.85% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.25% for the day. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq increased by 0.47%.

Heading into today, shares of the building material company had lost 18.22% over the past month, lagging the Construction sector's loss of 10.84% and the S&P 500's loss of 1.88%.

The upcoming earnings release of CRH will be of great interest to investors. The company's upcoming EPS is projected at $0.27, signifying a 325.00% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.33 billion, indicating a 8.51% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.97 per share and revenue of $40.17 billion, indicating changes of +7.18% and +7.27%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for CRH. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.28% lower. 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 17.27. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 17.27.

It is also worth noting that CRH currently has a PEG ratio of 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.

The Building Products - Miscellaneous industry is part of the Construction sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

5 Stocks Set to Double

Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include

Stock #1: A Disruptive Force with Notable Growth and Resilience

Stock #2: Bullish Signs Signaling to Buy the Dip

Stock #3: One of the Most Compelling Investments in the Market

Stock #4: Leader In a Red-Hot Industry Poised for Growth

Stock #5: Modern Omni-Channel Platform Coiled to Spring

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.

See Our Newest 5 Stocks Set to Double Picks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

CRH PLC (CRH): Free Stock Analysis Report

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

Zacks Investment Research