Sterling Infrastructure (STRL – Free Report) closed the latest trading day at $117.81, indicating a +1.18% change from the previous session’s end. The stock outpaced the S&P 500’s daily loss of 0.91%. Elsewhere, the Dow saw a downswing of 1.5%, while the tech-heavy Nasdaq depreciated by 1.96%.
The the stock of civil construction company has fallen by 17.07% in the past month, lagging the Construction sector’s loss of 7.5% and the S&P 500’s loss of 7.38%.
Investors will be eagerly watching for the performance of Sterling Infrastructure in its upcoming earnings disclosure. In that report, analysts expect Sterling Infrastructure to post earnings of $1.28 per share. This would mark year-over-year growth of 28%. Alongside, our most recent consensus estimate is anticipating revenue of $415.6 million, indicating a 5.62% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.35 per share and a revenue of $2.03 billion, demonstrating changes of +20.49% and -4.08%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Sterling Infrastructure. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 13.7% higher within the past month. Sterling Infrastructure currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Sterling Infrastructure is holding a Forward P/E ratio of 15.85. This expresses a discount compared to the average Forward P/E of 16.21 of its industry.
Meanwhile, STRL’s PEG ratio is currently 1.06. 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 of the close of trade yesterday, the Engineering – R and D Services industry held an average PEG ratio of 1.21.
The Engineering – R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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