ACA Arcosa Inc

Arcosa (ACA) has shown strong performance, outperforming the S&P 500, with robust growth across all its segments, notably a 45.7% YoY surge in its Construction Products segment. Management projects significant revenue and EBITDA for 2025, driven by both organic expansion and strategic acquisitions. Despite not being deeply undervalued, the shares are considered attractively priced relative to peers, leading to a "Buy" rating.

Arcosa Inc. delivered a strong Q3 with a double beat, mainly driven by robust growth in its Construction Products segment. A healthy demand environment and a substantial backlog provide clear visibility for sustained double-digit revenue growth into FY26. With reasonable valuation and favorable growth prospects, Arcosa (ACA) remains a decent buy.

Arcosa, Inc. (NYSE:ACA) currently has a high price-to-earnings (P/E) ratio of 36.5x, significantly above the market average in the United States, yet analysts believe it is justified due to strong earnings and anticipated future growth. The company has shown impressive earnings growth, with EPS increasing by 15% last year and an aggregated 46% over three years, with a further 52% growth expected next year. This strong performance and positive outlook explain why investors are willing to pay a premium for Arcosa's stock.

Arcosa, Inc. (NYSE:ACA) shareholders have seen a stellar 103% return on their investment over the past three years, significantly outperforming the market despite earnings per share growth of 13% annually. This indicates increasing market optimism for the stock, supported by recent insider buying. The company also provided a 12% return over the last twelve months and 15% per year over five years.

Investors in Arcosa (ACA) should monitor options market activity, as the Feb 20, 2026 $45 Put shows high implied volatility, suggesting expectations of a significant price movement. While implied volatility is crucial, analysts currently rate Arcosa as a Zacks Rank #2 (Buy), with recent upward revisions to earnings estimates, indicating a potential trading opportunity. This high implied volatility might also attract options traders looking to sell premium.

Harbor Capital Advisors Inc. significantly reduced its stake in Arcosa, Inc. (NYSE:ACA) by 65.2% in the third quarter, selling nearly 140,000 shares. Despite this, institutional investors collectively own a substantial 90.66% of the company's stock. Arcosa recently declared a quarterly dividend of $0.05 per share, and analysts maintain a "Moderate Buy" rating with an average price target of $115.