Sterling Infrastructure (STRL) closed the most recent trading day at $132.41, moving -1.58% from the previous trading session. This change was narrower than the S&P 500's 3.46% loss on the day. Meanwhile, the Dow lost 2.5%, and the Nasdaq, a tech-heavy index, lost 4.31%.
The civil construction company's stock has climbed by 15.54% in the past month, exceeding the Construction sector's loss of 6.13% and the S&P 500's loss of 5.27%.
The investment community will be closely monitoring the performance of Sterling Infrastructure in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 58% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $415.6 million, indicating a 5.62% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.21 per share and revenue of $2.03 billion, indicating changes of +34.59% and -4.08%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Sterling Infrastructure. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Sterling Infrastructure is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Sterling Infrastructure is currently exchanging hands at a Forward P/E ratio of 13.87. This represents no noticeable deviation compared to its industry's average Forward P/E of 13.87.
Investors should also note that STRL has a PEG ratio of 0.92 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Engineering - R and D Services industry currently had an average PEG ratio of 1.05 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 17% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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