Sterling Infrastructure (STRL) closed at $660.04 in the latest trading session, marking a -3.26% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 1.55%.
The stock of civil construction company has fallen by 20.57% in the past month, lagging the Construction sector's gain of 2.79% and the S&P 500's gain of 4.28%.
Market participants will be closely following the financial results of Sterling Infrastructure in its upcoming release. The company is predicted to post an EPS of $5.2, indicating a 93.31% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, up 74.03% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.12 per share and a revenue of $3.96 billion, representing changes of +75.74% and +59.15%, respectively, from the prior year.
Any recent changes to analyst estimates for Sterling Infrastructure should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sterling Infrastructure currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Sterling Infrastructure is at present trading with a Forward P/E ratio of 35.68. This valuation marks a premium compared to its industry average Forward P/E of 24.69.
It is also worth noting that STRL currently has a PEG ratio of 2.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. STRL's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).