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Granite (GVA) Wins $16M Contract to Lift Salinas Traffic Flow
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Granite Construction Incorporated (GVA - Free Report) has secured a $16 million contract from the City of Salinas to upgrade a major traffic route between residential areas and Highway 101. The project will widen East Boronda Road into a four-lane roadway and construct a multi-lane roundabout at the McKinnon Street intersection, significantly improving traffic flow and safety.
The enhancements include bioretention facilities, buffered bike lanes, bus pullouts, sidewalks, ADA-compliant ramps, storm drain lines, sanitary sewer lines, street lighting, and landscaping. These upgrades will notably increase safety for pedestrians and bicyclists, especially those commuting to the nearby elementary school.
Granite's local operations will supply essential materials, including 7,500 tons of Hot Mix Asphalt, 8,000 tons of Recycled Aggregate Base from the Salinas Hot Plant, and 18,000 tons of various aggregates from the Handley Ranch Quarry.
Scheduled to begin in third-quarter 2024 and complete by Fall 2025, the project is funded by the City of Salinas and will be included in Granite’s second-quarter capital allocation plan (CAP). This contract strengthens Granite's local market presence and showcases its capability to manage large-scale infrastructure projects, potentially leading to more future opportunities.
Share Price Performance
Shares of GVA soared 44.4% in the past year compared with the Zacks Building Products - Heavy Construction industry’s 44% growth. The Zacks Consensus Estimate for 2024 earnings per share (EPS) indicates 51.6% year-over-year growth.
Image Source: Zacks Investment Research
The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.
The performance of Granite’s operating segments showcased strong market growth in first-quarter 2024, which benefited from a robust public funding environment. CAP increased to $5.5 billion in the first quarter, implying a year-over-year increase from $5.1 billion as of Mar 31, 2023. Both public and private markets continued to be strong. GVA expects substantial opportunities to build CAP in the second quarter and the rest of 2024.
Zacks Rank and Stocks to Consider
Granite presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Construction sector have been discussed below:
FLR delivered a trailing four-quarter earnings surprise of 51.3%, on average. The Zacks Consensus Estimate for FLR’s 2024 sales and EPS indicates growth of 14.3% and 5.5%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank of 2. The stock has gained 18.1% YTD.
PWR delivered a trailing four-quarter earnings surprise of 4.7%, on average. The Zacks Consensus Estimate for PWR’s 2024 sales and EPS indicates an improvement of 8.5% and 17.9%, respectively, from a year ago.
Dycom Industries (DY - Free Report) currently holds a Zacks Rank of 2. The stock has surged 47.4% YTD.
DY delivered a trailing four-quarter earnings surprise of 30.2%, on average. The Zacks Consensus Estimate for DY’s fiscal 2025 sales and EPS indicates an improvement of 10.2% and 8%, respectively, from a year ago.
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Granite (GVA) Wins $16M Contract to Lift Salinas Traffic Flow
Granite Construction Incorporated (GVA - Free Report) has secured a $16 million contract from the City of Salinas to upgrade a major traffic route between residential areas and Highway 101. The project will widen East Boronda Road into a four-lane roadway and construct a multi-lane roundabout at the McKinnon Street intersection, significantly improving traffic flow and safety.
The enhancements include bioretention facilities, buffered bike lanes, bus pullouts, sidewalks, ADA-compliant ramps, storm drain lines, sanitary sewer lines, street lighting, and landscaping. These upgrades will notably increase safety for pedestrians and bicyclists, especially those commuting to the nearby elementary school.
Granite's local operations will supply essential materials, including 7,500 tons of Hot Mix Asphalt, 8,000 tons of Recycled Aggregate Base from the Salinas Hot Plant, and 18,000 tons of various aggregates from the Handley Ranch Quarry.
Scheduled to begin in third-quarter 2024 and complete by Fall 2025, the project is funded by the City of Salinas and will be included in Granite’s second-quarter capital allocation plan (CAP). This contract strengthens Granite's local market presence and showcases its capability to manage large-scale infrastructure projects, potentially leading to more future opportunities.
Share Price Performance
Shares of GVA soared 44.4% in the past year compared with the Zacks Building Products - Heavy Construction industry’s 44% growth. The Zacks Consensus Estimate for 2024 earnings per share (EPS) indicates 51.6% year-over-year growth.
Image Source: Zacks Investment Research
The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.
The performance of Granite’s operating segments showcased strong market growth in first-quarter 2024, which benefited from a robust public funding environment. CAP increased to $5.5 billion in the first quarter, implying a year-over-year increase from $5.1 billion as of Mar 31, 2023. Both public and private markets continued to be strong. GVA expects substantial opportunities to build CAP in the second quarter and the rest of 2024.
Zacks Rank and Stocks to Consider
Granite presently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Construction sector have been discussed below:
Fluor Corporation (FLR - Free Report) currently carries a Zacks Rank #2 (Buy). The stock has rallied 11.5% in the year-to-date (YTD) period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLR delivered a trailing four-quarter earnings surprise of 51.3%, on average. The Zacks Consensus Estimate for FLR’s 2024 sales and EPS indicates growth of 14.3% and 5.5%, respectively, from the prior-year levels.
Quanta Services, Inc. (PWR - Free Report) currently carries a Zacks Rank of 2. The stock has gained 18.1% YTD.
PWR delivered a trailing four-quarter earnings surprise of 4.7%, on average. The Zacks Consensus Estimate for PWR’s 2024 sales and EPS indicates an improvement of 8.5% and 17.9%, respectively, from a year ago.
Dycom Industries (DY - Free Report) currently holds a Zacks Rank of 2. The stock has surged 47.4% YTD.
DY delivered a trailing four-quarter earnings surprise of 30.2%, on average. The Zacks Consensus Estimate for DY’s fiscal 2025 sales and EPS indicates an improvement of 10.2% and 8%, respectively, from a year ago.