Weekly Pick: ROAD
Civil infrastructure stock pulled back from an all-time high
This week’s pick comes from a crowded industrial tape, but ROAD stands out for one simple reason: it’s in the buy-zone.
While many strong charts still need a reset, ROAD did the work. It pulled back, stabilized, and is now tightening in a way that makes risk manageable.
Construction Partners, Inc ($ROAD)
ROAD is a civil infrastructure construction company focused on roads, highways, and public works projects, primarily in the southeastern U.S.
Revenue is driven by long-duration public spending, backlog visibility, and steady execution rather than economic acceleration. It’s boring by design and the long term chart confirms the slow steady grind of a business with predictable revenue.
Fundamentals and ownership
Market capitalization $6.34B
Current p/e 63.06 | Forward p/e 31.78
Clean balance sheet with a strong cash position so no dilution risk
Backlog-driven revenue visibility with sales up every year since 2017
Institutional ownership is meaningful and stable
16.8% of the float still held by insiders
This is a straightforward operator. Nothing needs to change for the stock to work.
Technicals
This one has some of the cleanest technicals you’ll find.
Daily
Pulled back from an ATH in late September
Multiple holds near the 50-day
Price tightening instead of rolling over
No impulsive selling on down days
Weekly
Trend intact
Pullback respected prior structure
No distribution pattern
Monthly
Long-term uptrend still in place
Consolidation, not exhaustion
Compared to most industrial names right now, ROAD is earlier in the next potential leg, not later in the current one. And historically every pullback has been a buying opportunity. I like that brand of predictability.
Daily
Weekly
Monthly
Risks
This is not a squeeze or momentum trade and could stall sideways for a while
If industrials broadly unwind, ROAD won’t be immune
Failure would likely show up quickly via a loss of recent support
The risk here is not collapse. It’s stagnation or a clean stop-out.
How I’m trading it
I’m long ROAD via shares as long as it holds recent support.
Starter position
Risk defined just below recent support
Add only on confirmation
If it loses structure, I’m out. No adjustment, no averaging down. And that’s been thematic of my trading lately. I’ve been respecting sell-stops vigilantly and I’m heavier in cash than I’ve been in a long time.
I trade what I post.
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This isn’t an alert service, and I’m not your financial advisor.
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