In the latest trading session, Sterling Infrastructure (STRL) closed at $133.92, marking a +1.79% move from the previous day. The stock's change was less than the S&P 500's daily gain of 2.51%. At the same time, the Dow added 2.66%, and the tech-heavy Nasdaq gained 2.71%.
Shares of the civil construction company have depreciated by 1.78% over the course of the past month, outperforming the Construction sector's loss of 9.21% and the S&P 500's loss of 8.86%.
The upcoming earnings release of Sterling Infrastructure will be of great interest to investors. The company is predicted to post an EPS of $1.58, indicating a 58% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $415.6 million, reflecting a 5.62% fall from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.21 per share and a revenue of $2.03 billion, indicating changes of +34.59% and -4.08%, respectively, from the former 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sterling Infrastructure presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Sterling Infrastructure is currently trading at a Forward P/E ratio of 16.03. This expresses no noticeable deviation compared to the average Forward P/E of 16.03 of its industry.
It is also worth noting that STRL currently has a PEG ratio of 1.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Engineering - R and D Services industry was having an average PEG ratio of 1.16.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 17, positioning it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow STRL in the coming trading sessions, be sure to utilize Zacks.com.
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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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