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3 Reasons to Sell BBCP and 1 Stock to Buy Instead

BBCP Cover Image

Concrete Pumping has gotten torched over the last six months - since January 2025, its stock price has dropped 20.8% to $6.95 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.

Is there a buying opportunity in Concrete Pumping, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.

Why Do We Think Concrete Pumping Will Underperform?

Even with the cheaper entry price, we're cautious about Concrete Pumping. Here are three reasons why BBCP doesn't excite us and a stock we'd rather own.

1. Core Business Falling Behind as Demand Declines

We can better understand Construction and Maintenance Services companies by analyzing their organic revenue. This metric gives visibility into Concrete Pumping’s core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement.

Over the last two years, Concrete Pumping’s organic revenue averaged 3.2% year-on-year declines. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Concrete Pumping might have to lean into acquisitions to grow, which isn’t ideal because M&A can be expensive and risky (integrations often disrupt focus). Concrete Pumping Organic Revenue Growth

2. Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Concrete Pumping’s revenue to drop by 3.1%, close to its 5.3% annualized growth for the past five years. This projection doesn't excite us and suggests its newer products and services will not accelerate its top-line performance yet.

3. EPS Took a Dip Over the Last Two Years

Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.

Sadly for Concrete Pumping, its EPS declined by more than its revenue over the last two years, dropping 24.2%. This tells us the company struggled to adjust to shrinking demand.

Concrete Pumping Trailing 12-Month EPS (Non-GAAP)

Final Judgment

Concrete Pumping falls short of our quality standards. After the recent drawdown, the stock trades at 16.7× forward P/E (or $6.95 per share). While this valuation is reasonable, we don’t see a big opportunity at the moment. There are more exciting stocks to buy at the moment. We’d recommend looking at our favorite semiconductor picks and shovels play.

Stocks We Would Buy Instead of Concrete Pumping

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