(ACA) Arcosa - Ratings and Ratios

Arcosa Inc is a multifaceted infrastructure solutions provider catering to the US construction, engineered structures, and transportation sectors. The companys diversified portfolio is segmented into Construction Products, Engineered Structures, and Transportation Products, allowing it to tap into various markets, including residential and non-residential construction, infrastructure development, electricity transmission, wind power generation, and commercial marine transportation.

The Construction Products segment is a critical component, supplying essential materials and equipment such as aggregates, specialty materials, and construction site support equipment to the construction industry. Meanwhile, the Engineered Structures segment is a significant player in the production of utility structures, wind towers, and telecommunication structures, serving contractors, distributors, and government agencies. The Transportation Products segment rounds out the companys offerings with inland barges, fiberglass barge covers, and other marine equipment for the commercial marine transportation industry.

From a market perspective, Arcosas shares have demonstrated a relatively stable performance, with a current price of $89.94. Technical indicators suggest a potential upward trajectory, as the stock is trading above its 20-day and 50-day simple moving averages (SMA20: $87.67, SMA50: $82.47). However, the stock is below its 200-day simple moving average (SMA200: $92.01), indicating a possible resistance level. With an average true range (ATR) of 2.29, representing a 2.54% daily price movement, investors can expect moderate volatility.

Fundamentally, Arcosas market capitalization stands at $4.28 billion, with a price-to-earnings (P/E) ratio of 55.14 and a forward P/E of 23.31. The companys return on equity (RoE) is currently 3.21%, indicating room for improvement in terms of profitability. Considering the current valuation and growth prospects, a forecast can be made. Based on the technical data, a breakout above the SMA200 could signal a potential uptrend, while the fundamental data suggests that the company may need to improve its profitability to justify its current valuation. A potential price target could be around $105, representing a 17% increase from current levels, assuming the company can deliver improved earnings and maintain its market momentum.