On The Road To A Breakout: Sector Leader Paves AI-Enabled Path

2026-02-27 04:53:00

Nvidia (NVDA) and Alphabet (GOOGL) make headlines as artificial intelligence stocks to watch, but an asphalt-centered infrastructure company has paved its way into that conversation. Now shares of Construction Partners (ROAD) stand poised to drive right into a new buy zone.

A force to be reckoned with in the heavy construction industry, alongside peers like MasTec (MTZ), Sterling Infrastructure (STRL), and Granite Construction (GVA), Construction Partners sports the highest possible Composite Rating of 99. The Dothan, Ala.-based company also holds a spot on the Stock Spotlight list and Sector Leaders, IBD’s most stringent screen.

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Data-Driven Construction Drives Big Growth And Demand

While bellwether players like Nvidia and Alphabet instantly come to mind when AI stocks are discussed, Construction Partners has also tapped into AI-fueled infrastructure.

With a focus on the Sunbelt, which stretches from Florida to California, it serves both public and private clients on roads, highways, runways, bridges, and commercial projects.

Ongoing initiatives by Construction Partners reflect an industrywide shift toward data-driven construction. Related uses of AI include AI-integrated machine guidance for graders, bulldozers, and other heavy equipment, as well as logistics optimization and predictive maintenance.

Over the last five quarters, the company has delivered sales growth ranging from 42% to 67%. In the fourth quarter, Construction Partners posted a 44% spike in revenue to $809.5 million.

Earnings for the quarter rose 88% year over year to 47 cents per share. For the current year, analysts forecast a 32% jump in earnings to $2.91 per share, and project a 25% rise to $3.63 a share in 2027.

That growth has put Construction Partners’ stock in demand on Wall Street. The stock has a B+ Accumulation/Distribution Rating and a 1.3 up/down volume ratio.

See Which Stocks Just Came On Or Off IBD’s Screens

ROAD Stock Paves Way For Breakout

In a move that bodes well for Construction Partners, the stock reset its base count in November by undercutting the low in its prior pattern. That makes the current cup-shape setup a first-stage, lower-risk base.

The stock briefly cleared the 138.90 buy point on Feb. 12 before pulling back. On Thursday, shares drifted lower, but closed in the upper half of the day’s price range.

While forming the current cup pattern, the 21-day exponential moving average climbed back above the longer-term 50-day line, a sign of rising technical strength. And in a show of rising market leadership, the relative strength line continues to close in on a 52-week high.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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