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Sterling Infrastructure (STRL) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Sterling Infrastructure (STRL - Free Report) standing at $114.03, reflecting a -0.74% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.27%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.88%.

Coming into today, shares of the civil construction company had lost 10.31% in the past month. In that same time, the Construction sector lost 4.64%, while the S&P 500 gained 2.85%.

The investment community will be closely monitoring the performance of Sterling Infrastructure in its forthcoming earnings report. The company's upcoming EPS is projected at $1.42, signifying a 11.81% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $583.3 million, up 11.67% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.13 per share and a revenue of $2.2 billion, representing changes of +14.77% and +11.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Sterling Infrastructure. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Sterling Infrastructure possesses a Zacks Rank of #2 (Buy).

Looking at valuation, Sterling Infrastructure is presently trading at a Forward P/E ratio of 22.39. Its industry sports an average Forward P/E of 18.93, so one might conclude that Sterling Infrastructure is trading at a premium comparatively.

It is also worth noting that STRL currently has a PEG ratio of 1.12. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Engineering - R and D Services industry currently had an average PEG ratio of 1.33 as of yesterday's close.

The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 48, which puts it in the top 20% of all 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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