Sterling Infrastructure (STRL) closed at $227.00 in the latest trading session, marking a -4.22% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
The civil construction company's shares have seen an increase of 16.8% over the last month, surpassing the Construction sector's gain of 3.52% and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. The company is expected to report EPS of $2.26, up 35.33% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $555.13 million, indicating a 4.75% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.61 per share and a revenue of $2.09 billion, indicating changes of +41.15% and -1.22%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Sterling Infrastructure. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sterling Infrastructure is currently a Zacks Rank #3 (Hold).
Looking at valuation, Sterling Infrastructure is presently trading at a Forward P/E ratio of 27.54. This represents a premium compared to its industry average Forward P/E of 20.44.
We can additionally observe that STRL currently boasts a PEG ratio of 1.84. 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 had an average PEG ratio of 1.81 as trading concluded yesterday.
The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 16% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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