In the latest close session, Sterling Infrastructure (STRL) was down 1.19% at $348.57. The stock's performance was behind the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.67%.
The civil construction company's stock has climbed by 23.04% in the past month, exceeding the Construction sector's loss of 1.68% and the S&P 500's gain of 4.06%.
Investors will be eagerly watching for the performance of Sterling Infrastructure in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.79, signifying a 41.62% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $612.4 million, up 3.14% from the year-ago period.
STRL's full-year Zacks Consensus Estimates are calling for earnings of $9.57 per share and revenue of $2.26 billion. These results would represent year-over-year changes of +56.89% and +6.58%, respectively.
Investors should also pay attention to any latest changes in 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Sterling Infrastructure holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Sterling Infrastructure is presently being traded at a Forward P/E ratio of 36.88. This valuation marks a premium compared to its industry average Forward P/E of 23.01.
It is also worth noting that STRL currently has a PEG ratio of 2.46. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Engineering - R and D Services industry had an average PEG ratio of 1.73 as trading concluded yesterday.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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