Shares of Orion Marine Group (ORN) have been strong performers lately, with the stock up 4.7% over the past month. The stock hit a new 52-week high of $9.94 in the previous session. Orion Marine has gained 28.2% since the start of the year compared to the 5.9% gain for the Zacks Construction sector and the 29.4% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2025, Orion Marine reported EPS of $0.07 versus consensus estimate of -$0.01.
For the current fiscal year, Orion Marine is expected to post earnings of $0.17 per share on $827.46 in revenues. This represents a 13.33% change in EPS on a 3.9% change in revenues. For the next fiscal year, the company is expected to earn $0.41 per share on $912.9 in revenues. This represents a year-over-year change of 138.24% and 10.33%, respectively.
Valuation Metrics
While Orion Marine has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Orion Marine has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 55.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 27X. On a trailing cash flow basis, the stock currently trades at 9.2X versus its peer group's average of 14.4X. Additionally, the stock has a PEG ratio of 2.21. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Orion Marine currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Orion Marine fits the bill. Thus, it seems as though Orion Marine shares could have potential in the weeks and months to come.
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Orion Group Holdings, Inc. (ORN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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