Sterling Infrastructure (STRL) ended the recent trading session at $360.16, demonstrating a -6.88% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
Heading into today, shares of the civil construction company had gained 21.85% over the past month, outpacing the Construction sector's gain of 7.04% and the S&P 500's gain of 0.93%.
Analysts and investors alike will be keeping a close eye on the performance of Sterling Infrastructure in its upcoming earnings disclosure. 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. Meanwhile, the latest consensus estimate predicts the revenue to be $648.6 million, indicating a 30.02% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $10.43 per share and a revenue of $2.38 billion, indicating changes of +70.98% and 0%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sterling Infrastructure. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Sterling Infrastructure boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Sterling Infrastructure has a Forward P/E ratio of 32.37 right now. For comparison, its industry has an average Forward P/E of 25.99, which means Sterling Infrastructure is trading at a premium to the group.
One should further note that STRL currently holds a PEG ratio of 2.16. 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. The Engineering - R and D Services industry currently had an average PEG ratio of 2.14 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons 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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