Construction Partners (ROAD) Slid as EPS Missed Analyst Estimates

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. As many believe, US equities experienced solid returns in 2025, with double-digit gains across all major indices, yet underlying conditions revealed extreme volatility and market leadership. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Small Cap Strategy returned -1.89% net-of-fees, trailing the Russell 2000 Growth Index’s 1.22% return. The returns were volatile in the quarter. The “low quality” stocks rally persisted in the quarter, but at a slower pace compared to earlier quarters. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors highlighted Construction Partners, Inc. (NASDAQ:ROAD). Construction Partners, Inc. (NASDAQ:ROAD) is a civil infrastructure company that engages in the construction and maintenance of roadways. On February 18, 2026, Construction Partners, Inc. (NASDAQ:ROAD) stock closed at $130.48 per share. One-month return of Construction Partners, Inc. (NASDAQ:ROAD) was 14.25%, and its shares are up 69.65% over the past twelve months. Construction Partners, Inc. (NASDAQ:ROAD) has a market capitalization of $7.374 billion.

Conestoga Capital Advisors stated the following regarding Construction Partners, Inc. (NASDAQ:ROAD) in its fourth quarter 2025 investor letter:

"Construction Partners, Inc. (NASDAQ:ROAD) is a vertically integrated civil infrastructure company constructing roadways and highways across the Sunbelt. The stock underperformed during the quarter following the release of fiscal fourth-quarter results, where earnings per share missed analyst estimates. While the company delivered better-than-expected revenue growth and highlighted a record backlog, the market focused on the bottom-line shortfall. We remain confident in the company’s ability to benefit from sustained infrastructure demand and its disciplined acquisition strategy."

Construction Partners, Inc. (NASDAQ:ROAD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 26 hedge fund portfolios held Construction Partners, Inc. (NASDAQ:ROAD) at the end of the third quarter, compared to 27 in the previous quarter. Construction Partners, Inc.’s (NASDAQ:ROAD) revenue was $809.5 million in the first quarter of 2026, marking an increase of 44% compared first quarter of fiscal 2025. While we acknowledge the potential of Construction Partners, Inc. (NASDAQ:ROAD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Construction Partners, Inc. (NASDAQ:ROAD) and shared Conestoga Capital Advisors' views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.