In the latest close session, Sterling Infrastructure (STRL) was up +2.98% at $322.90. The stock's change was more than the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.94%.
The stock of civil construction company has risen by 13.88% in the past month, leading the Construction sector's gain of 0.75% and the S&P 500's gain of 2.32%.
Market participants will be closely following the financial results of Sterling Infrastructure in its upcoming release. The company is predicted to post an EPS of $2.79, indicating a 41.62% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $612.4 million, up 3.14% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $9.57 per share and a revenue of $2.25 billion, demonstrating changes of +56.89% and +6.52%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Sterling Infrastructure. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.74% higher. Sterling Infrastructure is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Sterling Infrastructure has a Forward P/E ratio of 32.78 right now. This denotes a premium relative to the industry average Forward P/E of 20.75.
It is also worth noting that STRL currently has a PEG ratio of 2.19. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Engineering - R and D Services was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Sterling Infrastructure, Inc. (STRL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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