Sterling Infrastructure (STRL – Free Report) closed the latest trading day at $178.15, indicating a +0.36% change from the previous session’s end. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow lost 0.06%, while the tech-heavy Nasdaq added 1.24%.
Market participants will be closely following the financial results of Sterling Infrastructure in its upcoming release. The company is forecasted to report an EPS of $1.32, showcasing a 1.54% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $533.2 million, up 9.72% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Sterling Infrastructure. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Sterling Infrastructure possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Sterling Infrastructure is currently exchanging hands at a Forward P/E ratio of 27.54. Its industry sports an average Forward P/E of 20.09, so one might conclude that Sterling Infrastructure is trading at a premium comparatively.
We can also see that STRL currently has a PEG ratio of 1.84. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As the market closed yesterday, the Engineering – R and D Services industry was having an average PEG ratio of 1.78.
The Engineering – R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 80, placing it within the top 32% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Financial Market Newsflash
No financial news published today. Check back later.
