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Sterling Construction (STRL) Gains As Market Dips: What You Should Know

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In the latest trading session, Sterling Construction (STRL - Free Report) closed at $28.97, marking a +0.14% move from the previous day. This move outpaced the S&P 500's daily loss of 1.81%. Meanwhile, the Dow lost 1.47%, and the Nasdaq, a tech-heavy index, lost 0.51%.

Heading into today, shares of the civil construction company had gained 6.05% over the past month, outpacing the Construction sector's loss of 5.25% and the S&P 500's loss of 1.84% in that time.

Wall Street will be looking for positivity from Sterling Construction as it approaches its next earnings report date. On that day, Sterling Construction is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 85%. Our most recent consensus estimate is calling for quarterly revenue of $340 million, down 2.08% from the year-ago period.

Investors might also notice recent changes to analyst estimates for Sterling Construction. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 23.57% higher. Sterling Construction is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Sterling Construction is currently trading at a Forward P/E ratio of 9.94. For comparison, its industry has an average Forward P/E of 15.1, which means Sterling Construction is trading at a discount to the group.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 184, which puts it in the bottom 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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