Have you been paying attention to shares of Great Lakes Dredge & Dock (GLDD)? Shares have been on the move with the stock up 9.4% over the past month. The stock hit a new 52-week high of $12.93 in the previous session. Great Lakes Dredge & Dock has gained 13.1% since the start of the year compared to the 3.6% gain for the Zacks Construction sector and the 40.2% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on November 4, 2025, Great Lakes Dredge & Dock reported EPS of $0.26 versus consensus estimate of $0.17.
For the current fiscal year, Great Lakes Dredge & Dock is expected to post earnings of $1.02 per share on $845.81 in revenues. This represents a 21.43% change in EPS on a 10.9% change in revenues. For the next fiscal year, the company is expected to earn $1.02 per share on $880.7 in revenues. This represents a year-over-year change of 0% and 4.13%, respectively.
Valuation Metrics
Though Great Lakes Dredge & Dock has recently hit a 52-week high, what is next for Great Lakes Dredge & Dock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Great Lakes Dredge & Dock has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.6X current fiscal year EPS estimates, which is not in-line with the peer industry average of 25.2X. On a trailing cash flow basis, the stock currently trades at 6.9X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 1.05. This is good enough to put the company in the top echelon of all stocks we cover from a value perspective, making Great Lakes Dredge & Dock an interesting choice for value investors.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Great Lakes Dredge & Dock currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Great Lakes Dredge & Dock passes the test. Thus, it seems as though Great Lakes Dredge & Dock shares could have potential in the weeks and months to come.
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Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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