Installed Building Products (IBP) closed at $77.88 in the latest trading session, marking a +0.78% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Prior to today's trading, shares of the residential insulation installer had gained 1.02% over the past month. This has traded in line with the Construction sector and lagged the S&P 500's gain of 1.91% in that time.
IBP will be looking to display strength as it nears its next earnings release. In that report, analysts expect IBP to post earnings of $0.86 per share. This would mark year-over-year growth of 19.44%. Meanwhile, our latest consensus estimate is calling for revenue of $389.71 million, up 10.36% from the prior-year quarter.
Any recent changes to analyst estimates for IBP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IBP currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that IBP has a Forward P/E ratio of 20.77 right now. This represents a premium compared to its industry's average Forward P/E of 18.16.
Investors should also note that IBP has a PEG ratio of 1.3 right now. 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. Building Products - Miscellaneous stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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