Investors are constantly on the lookout for growth stocks that can offer above-average returns. Construction Partners (ROAD) emerges as a prime example, with its potential to capture the market's attention and deliver exceptional financial results. However, the task of identifying such stocks is not without its challenges. In this article, we will explore the key factors that make Construction Partners a great growth pick and why it stands out in the current market.

Unlock the Potential of Growth Stocks with Construction Partners

Earnings Growth: The Driving Force

1: Earnings growth is undoubtedly the cornerstone of any growth investment. For Construction Partners, historical earnings growth of 7.4% provides a solid foundation. But it is the projected earnings growth of 47.6% this year that truly catches the eye. This significant growth rate not only surpasses the industry average of 9.1% but also indicates strong prospects for the company. Investors are drawn to such double-digit earnings growth as it often translates into substantial stock price gains. 2: The ability of Construction Partners to consistently grow its earnings showcases its financial strength and management's ability to navigate the market. This growth potential makes it an attractive option for those seeking long-term investment opportunities in the construction sector.

Cash Flow Growth: The Lifeblood of Growth

1: Cash is essential for any business, and for growth-oriented companies like Construction Partners, higher-than-average cash flow growth is crucial. Currently, the company's year-over-year cash flow growth stands at 27.2%, which is significantly higher than many of its peers and the industry average of 2.8%. This indicates that Construction Partners has the financial resources to undertake new projects without relying heavily on external funding. 2: By maintaining a healthy cash flow, the company can invest in expansion, upgrade its infrastructure, and stay ahead of the competition. The historical cash flow growth rate of 14.4% over the past 3-5 years further reinforces its ability to generate consistent cash flows and build a sustainable business.

Earnings Estimate Revisions: A Positive Trend

1: The trend in earnings estimate revisions is a key indicator of a stock's potential. For Construction Partners, there have been upward revisions in current-year earnings estimates, with the Zacks Consensus Estimate surging 10.6% over the past month. This positive trend suggests that analysts are becoming more optimistic about the company's future earnings prospects. 2: Such upward revisions often lead to increased investor confidence and can drive the stock price higher. Construction Partners' combination of a Growth Score of A and a Zacks Rank #2 due to positive earnings estimate revisions positions it as a potential outperformer in the market.Conclusion: Construction Partners (ROAD) presents a compelling case for growth investors. With its strong earnings growth, high cash flow growth, and positive earnings estimate revisions, the company has the potential to deliver exceptional returns. By considering these key factors, investors can make informed decisions and add Construction Partners to their portfolio for long-term growth.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.This combination indicates that Construction Partners is a potential outperformer and a solid choice for growth investors.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 reportConstruction Partners, Inc. (ROAD) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research