DA Davidson Reaffirms Sterling Infrastructure (STRL) Buy After Q2 Earnings Beat

Sterling Infrastructure, Inc. (NASDAQ:STRL) is one of the best Russell 2000 stocks to buy now. On August 5, DA Davidson reaffirmed its “Buy” rating on Sterling. The firm maintained the $265 price target for the stock, citing a stronger-than-expected earnings report.

Sterling reported its Q2 2025 earnings on August 4, delivering adjusted earnings per share (EPS) of $2.69. The EPS was well above both DA Davidson’s estimate of $2.36 and the broader consensus estimate of $2.25. Revenue reached $614.5 million, outperforming DA Davidson’s projection of $552.0 million and the consensus estimate of $554.4 million.

DA Davidson noted that Sterling achieved an adjusted EBITDA of $125.7 million, exceeding its estimate of $114.2 million. As a result of the earnings beat, Sterling increased its full-year guidance, excluding the potential impact of the pending CEC acquisition. The analysts emphasized that their positive outlook is based on the “continued strong performance” and “climbing margins” in Sterling’s E-Infrastructure segment.

Sterling Infrastructure, Inc. (NASDAQ:STRL) is a construction and infrastructure services company. It operates through three segments: Transportation, Building Solutions, and E-Infrastructure. The company specializes in heavy civil construction projects, including highways, bridges, and airports, and also provides site development services for data centers, warehouses, and distribution hubs.

While we acknowledge the potential of STRL 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.

READ NEXT: 10 Best Energy Stocks to Buy For the Long Term and Top 10 Industrial Stocks to Buy Amid Easing Tariff Uncertainties.

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