Sterling Infrastructure (STRL) ended the recent trading session at $361.44, demonstrating a +1.74% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.
The civil construction company's shares have seen an increase of 10.02% over the last month, surpassing the Construction sector's loss of 2.69% and the S&P 500's gain of 1.14%.
Analysts and investors alike will be keeping a close eye on the performance of Sterling Infrastructure in its upcoming earnings disclosure. On that day, Sterling Infrastructure is projected to report earnings of $2.79 per share, which would represent year-over-year growth of 41.62%. At the same time, our most recent consensus estimate is projecting a revenue of $612.4 million, reflecting a 3.14% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.57 per share and a revenue of $2.26 billion, representing changes of +56.89% and +6.58%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sterling Infrastructure. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sterling Infrastructure is currently a Zacks Rank #1 (Strong Buy).
Investors should also note Sterling Infrastructure's current valuation metrics, including its Forward P/E ratio of 37.14. This denotes a premium relative to the industry average Forward P/E of 23.04.
We can additionally observe that STRL currently boasts a PEG ratio of 2.48. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 1.69.
The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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