Shares of Everus Construction Group, Inc. (ECG) have been strong performers lately, with the stock up 38.8% over the past month. The stock hit a new 52-week high of $137.64 in the previous session. Everus Construction Group, Inc. has gained 52.1% since the start of the year compared to the 14.7% gain for the Zacks Construction sector and the 7.9% return for the Zacks Building Products - Miscellaneous industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 24, 2026, Everus Construction Group, Inc. reported EPS of $1.08 versus consensus estimate of $0.72.
Valuation Metrics
Though Everus Construction Group, Inc. has recently hit a 52-week high, what is next for Everus Construction Group, Inc.? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Everus Construction Group, Inc. has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 33.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 20.1X. On a trailing cash flow basis, the stock currently trades at 28.6X versus its peer group's average of 15.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Everus Construction Group, Inc. currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Everus Construction Group, Inc. meets the list of requirements. Thus, it seems as though Everus Construction Group, Inc. shares could still be poised for more gains ahead.
How Does ECG Stack Up to the Competition?
Shares of ECG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Advanced Drainage Systems, Inc. (WMS). WMS has a Zacks Rank of #2 (Buy) and a Value Score of D, a Growth Score of B, and a Momentum Score of C.
Earnings were strong last quarter. Advanced Drainage Systems, Inc. beat our consensus estimate by 14.41%, and for the current fiscal year, WMS is expected to post earnings of $6.72 per share on revenue of $3.02 billion.
Shares of Advanced Drainage Systems, Inc. have gained 11.9% over the past month, and currently trade at a forward P/E of 27.89X and a P/CF of 20.42X.
The Building Products - Miscellaneous industry may rank in the bottom 70% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ECG and WMS, even beyond their own solid fundamental situation.
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Everus Construction Group, Inc. (ECG): Free Stock Analysis Report Advanced Drainage Systems, Inc. (WMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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