In the latest trading session, Sterling Infrastructure (STRL) closed at $327.11, marking a +2.49% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.64% for the day. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.
Coming into today, shares of the civil construction company had lost 1.83% in the past month. In that same time, the Construction sector lost 0.09%, while the S&P 500 gained 0.55%.
The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. The company is forecasted to report an EPS of $2.63, showcasing a 80.14% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $648.6 million, reflecting a 30.02% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.43 per share and revenue of $2.38 billion, which would represent changes of +70.98% and 0%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Sterling Infrastructure. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Sterling Infrastructure currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Sterling Infrastructure is currently being traded at a Forward P/E ratio of 26.71. This represents a premium compared to its industry average Forward P/E of 22.56.
We can additionally observe that STRL currently boasts a PEG ratio of 1.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 1.6.
The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 107, putting it in the top 44% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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