CONSTRUCTION PARTNERS INC-A (NASDAQ:ROAD) – A High Growth Momentum Stock With Strong Technical Setup

CONSTRUCTION PARTNERS INC-A (NASDAQ:ROAD) stands out as a high-growth momentum candidate with a favorable technical setup. The company, which specializes in civil infrastructure construction, has demonstrated strong earnings and revenue growth while maintaining a technically sound chart pattern.

Growth Momentum Highlights

• Earnings Growth: ROAD posted a 500% year-over-year EPS growth in the most recent quarter, with a 25.6% increase over the past 12 months.
• Revenue Strength: Sales grew by 53.9% in the latest quarter, with a 31.5% increase over the trailing twelve months.
• Free Cash Flow Surge: FCF per share expanded by 452.9% year-over-year, indicating strong operational efficiency.
• Positive Revisions: Analysts have raised next-year EPS estimates by 10.5% over the past three months.
• Consistent Profit Margins: The company has maintained profitability, with recent quarters showing margin improvements.

Technical Strength & Setup

ROAD holds a Technical Rating of 10, reflecting strong price momentum and relative strength. Key observations from the technical report include:

• Uptrend Confirmation: Both short-term and long-term trends are positive, with the stock outperforming 96% of the market over the past year.
• Consolidation Pattern: The stock has been trading in a range between $98.21 and $111.98, presenting a potential breakout opportunity.
• Support Levels: A well-defined support zone exists between $102.38 and $105.30, providing a logical stop-loss area.
• Setup Rating of 8: The current pullback reduces volatility, offering a favorable entry point for momentum traders.

Why This Combination Matters

High-growth stocks with strong technical setups often attract institutional interest, leading to sustained upward moves. ROAD’s combination of accelerating earnings, improving margins, and a bullish chart structure makes it a candidate for further upside if market conditions remain favorable.

For more high-growth momentum stocks with strong technical setups, check our High Growth Momentum Breakout Screen.

Disclaimer

This is not investment advice. The observations are based on available data at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.