Have you been paying attention to shares of Great Lakes Dredge & Dock (GLDD)? Shares have been on the move with the stock up 0.1% over the past month. The stock hit a new 52-week high of $17.02 in the previous session. Great Lakes Dredge & Dock has gained 29.6% since the start of the year compared to the 2.6% move for the Zacks Construction sector and the 22.4% return for the Zacks Building Products - Heavy Construction industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on February 23, 2026, Great Lakes Dredge & Dock reported EPS of $0.3 versus consensus estimate of $0.2.
For the current fiscal year, Great Lakes Dredge & Dock is expected to post earnings of $1.13 per share on $905.39 in revenues. This represents a -5.83% change in EPS on a 1.92% change in revenues. For the next fiscal year, the company is expected to earn $1.27 per share on $985.53 in revenues. This represents a year-over-year change of 12.54% and 8.85%, respectively.
Valuation Metrics
While Great Lakes Dredge & Dock has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Great Lakes Dredge & Dock has a Value Score of B. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 15.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 24.3X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 15.1X. Additionally, the stock has a PEG ratio of 1.26. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Great Lakes Dredge & Dock currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Great Lakes Dredge & Dock fits the bill. Thus, it seems as though Great Lakes Dredge & Dock shares could have a bit more room to run in the near term.
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Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).