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Sterling Infrastructure (STRL) Laps the Stock Market: Here's Why
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The latest trading session saw Sterling Infrastructure (STRL - Free Report) ending at $128.81, denoting a +1.35% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.
The civil construction company's shares have seen an increase of 13.55% over the last month, surpassing the Construction sector's gain of 5.71% and the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. On that day, Sterling Infrastructure is projected to report earnings of $1.68 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $599.9 million, up 7.06% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $2.16 billion. These totals would mark changes of +26.62% and +9.69%, respectively, from last year.
Any recent changes to analyst estimates for Sterling Infrastructure should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Sterling Infrastructure possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Sterling Infrastructure has a Forward P/E ratio of 22.48 right now. For comparison, its industry has an average Forward P/E of 21.63, which means Sterling Infrastructure is trading at a premium to the group.
We can also see that STRL currently has a PEG ratio of 1.5. 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. STRL's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow STRL in the coming trading sessions, be sure to utilize Zacks.com.
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Sterling Infrastructure (STRL) Laps the Stock Market: Here's Why
The latest trading session saw Sterling Infrastructure (STRL - Free Report) ending at $128.81, denoting a +1.35% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%.
The civil construction company's shares have seen an increase of 13.55% over the last month, surpassing the Construction sector's gain of 5.71% and the S&P 500's gain of 3.67%.
The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. On that day, Sterling Infrastructure is projected to report earnings of $1.68 per share, which would represent year-over-year growth of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $599.9 million, up 7.06% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.66 per share and revenue of $2.16 billion. These totals would mark changes of +26.62% and +9.69%, respectively, from last year.
Any recent changes to analyst estimates for Sterling Infrastructure should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Sterling Infrastructure possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Sterling Infrastructure has a Forward P/E ratio of 22.48 right now. For comparison, its industry has an average Forward P/E of 21.63, which means Sterling Infrastructure is trading at a premium to the group.
We can also see that STRL currently has a PEG ratio of 1.5. 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. STRL's industry had an average PEG ratio of 1.46 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow STRL in the coming trading sessions, be sure to utilize Zacks.com.