Sterling Infrastructure (STRL) ended the recent trading session at $364.32, demonstrating a -1.27% change from the preceding day's closing price. Elsewhere, the Dow gained 0.47%, while the tech-heavy Nasdaq lost 0.16%.
Prior to today's trading, shares of the civil construction company had gained 0.44% outpaced the Construction sector's loss of 0.43% and lagged the S&P 500's gain of 1.16%.
Investors will be eagerly watching for the performance of Sterling Infrastructure in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.79, marking a 41.62% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $612.4 million, indicating a 3.14% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.57 per share and a revenue of $2.26 billion, indicating changes of +56.89% and +6.58%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sterling Infrastructure. Such recent modifications usually signify the changing landscape of near-term business trends. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sterling Infrastructure is currently a Zacks Rank #1 (Strong Buy).
Looking at valuation, Sterling Infrastructure is presently trading at a Forward P/E ratio of 38.58. This indicates a premium in contrast to its industry's Forward P/E of 23.48.
It's also important to note that STRL currently trades at a PEG ratio of 2.57. 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 average PEG ratio for the Engineering - R and D Services industry stood at 1.54 at the close of the market yesterday.
The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 85, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Sterling Infrastructure, Inc. (STRL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
