In the latest trading session, Sterling Infrastructure (STRL – Free Report) closed at $126.63, marking a +0.56% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.08%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq increased by 0.52%.
The the stock of civil construction company has risen by 1.34% in the past month, leading the Construction sector’s loss of 4.98% and the S&P 500’s loss of 7.33%.
The upcoming earnings release of Sterling Infrastructure will be of great interest to investors. In that report, analysts expect Sterling Infrastructure to post earnings of $1.28 per share. This would mark year-over-year growth of 28%. Meanwhile, the latest consensus estimate predicts the revenue to be $415.6 million, indicating a 5.62% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.35 per share and revenue of $2.06 billion. These totals would mark changes of +20.49% and -2.69%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Sterling Infrastructure. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 13.7% upward. Sterling Infrastructure is currently a Zacks Rank #1 (Strong Buy).
With respect to valuation, Sterling Infrastructure is currently being traded at a Forward P/E ratio of 17.15. This valuation marks a discount compared to its industry’s average Forward P/E of 17.24.
We can also see that STRL currently has a PEG ratio of 1.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. By the end of yesterday’s trading, the Engineering – R and D Services industry had an average PEG ratio of 1.3.
The Engineering – R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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