The latest trading session saw Sterling Infrastructure (STRL) ending at $140.39, denoting a -0.43% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 2.24%. At the same time, the Dow lost 1.73%, and the tech-heavy Nasdaq lost 3.07%.
The civil construction company's stock has climbed by 19.45% in the past month, exceeding the Construction sector's loss of 5.96% and the S&P 500's loss of 4.17%.
The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. The company's earnings per share (EPS) are projected to be $1.58, reflecting a 58% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $415.6 million, down 5.62% from the year-ago period.
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. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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, there's been no change in the Zacks Consensus EPS estimate. Sterling Infrastructure is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Sterling Infrastructure is holding a Forward P/E ratio of 17.18. This represents no noticeable deviation compared to its industry's average Forward P/E of 17.18.
Investors should also note that STRL has a PEG ratio of 1.15 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.16.
The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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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