After a long absence from Investor's Business Daily's monthly report on new buys by the best mutual funds, artificial intelligence juggernaut Nvidia has now made the list in each of the last two months. Hailing from a more "concrete" business sector, Construction Partners also paved its path onto this screen in each of the last two reports.
As shares of Nvidia notch yet another record high on news it can resume H20 AI chip sales to China, Construction Partners stock remains in buy range. The company, which focuses on the construction, repair, and maintenance of surface infrastructure, joins industry peer Granite Construction on the IBD Breakout Stocks Index. Construction Partners has also popped onto the Stock Spotlight screen.
Construction Partners Building Growth
Based in Dothan, Ala., Construction Partners operates across eight southeastern states. Publicly funded projects make up the majority of its business. Infrastructure works include local and state roadways, interstate highways, airport runways and bridges. It also performs private sector projects such as paving and sitework for office and industrial parks, shopping centers, and more.
On May 9, Construction Partners reported results for the second quarter of fiscal 2025. Marking a second quarter of accelerating sales growth, it generated a 54% gain in revenue to $571.7 million. In the next report, scheduled for Aug. 8, analysts forecast 57% sales growth to $814.3 million.
After reporting earnings of eight cents per share last quarter, Wall Street expects a 60% year-over-year gain to 94 cents per share in the upcoming report. For the full fiscal year, analysts forecast a 70% gain to $2.23 per share.
Sporting the highest-possible 99 Composite Rating, Construction Partners stock tops Nvidia's score of 97.
Stock Of The Day Weds AI With Construction
ROAD Stock Paves Buy Zone With Solid Support
As shares of Nvidia continue to soar, Construction Partners remains in buy range from its May breakout.
On May 13, Construction Partners stock briefly cleared a 103.69 buy point in a second-stage cup pattern. From there, shares floated in and out of buy range while testing — and mostly finding — support at its 21-day exponential moving average. On July 8, the stock showed its resilience with a notable bounce off its 50-day line.
Up nearly 3% Wednesday, Construction Partners edged just beyond the 103.69 to 108.88 buy zone. The stock also appears to be forming a flat base, which could offer a 111.98 entry.
Industry peer Granite Construction is also within buy range. The Building-Heavy Construction group ranks a strong No. 16 out of the 197 industries IBD tracks.
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