Here's Why CRH (CRH) Fell More Than Broader Market

In the latest trading session, CRH (CRH) closed at $87.66, marking a -1.89% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.59% for the day. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.

The stock of building material company has fallen by 8.82% in the past month, leading the Construction sector's loss of 9.47% and undershooting the S&P 500's loss of 1.37%.

The upcoming earnings release of CRH will be of great interest to investors. The company's upcoming EPS is projected at $2.22, signifying a 0.45% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.6 billion, reflecting a 4.83% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $5.9 per share and a revenue of $39.71 billion, demonstrating changes of +5.92% and +6.05%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for CRH. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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, the Zacks Consensus EPS estimate has moved 1.81% higher. Currently, CRH is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, CRH is at present trading with a Forward P/E ratio of 15.14. This signifies a discount in comparison to the average Forward P/E of 16.29 for its industry.

Also, we should mention that CRH has a PEG ratio of 1.62. 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. The Building Products - Miscellaneous industry had an average PEG ratio of 1.48 as trading concluded yesterday.

The Building Products - Miscellaneous industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 155, positioning it in the bottom 37% 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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