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Great Lakes Dredge & Dock (GLDD) Dips More Than Broader Market: What You Should Know

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Great Lakes Dredge & Dock (GLDD - Free Report) ended the recent trading session at $9.19, demonstrating a -1.5% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 1.39%. Elsewhere, the Dow saw an upswing of 0.6%, while the tech-heavy Nasdaq depreciated by 2.77%.

The the stock of provider of dredging and dock-contracting services has risen by 5.3% in the past month, lagging the Construction sector's gain of 8.14% and overreaching the S&P 500's gain of 4.43%.

The upcoming earnings release of Great Lakes Dredge & Dock will be of great interest to investors. The company is expected to report EPS of $0.03, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $165 million, up 24.37% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $746.93 million, which would represent changes of +414.29% and +26.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Great Lakes Dredge & Dock. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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. Great Lakes Dredge & Dock is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, Great Lakes Dredge & Dock is presently being traded at a Forward P/E ratio of 12.96. This valuation marks a discount compared to its industry's average Forward P/E of 21.29.

We can also see that GLDD currently has a PEG ratio of 0.37. 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 of the close of trade yesterday, the Building Products - Heavy Construction industry held an average PEG ratio of 2.13.

The Building Products - Heavy Construction industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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