In the latest close session, Sterling Infrastructure (STRL) was up +1.83% at $650.22. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the civil construction company had lost 25.91% in the past month. In that same time, the Construction sector lost 4.61%, while the S&P 500 gained 0.55%.
The investment community will be closely monitoring the performance of Sterling Infrastructure in its forthcoming earnings report. It is anticipated that the company will report an EPS of $5.2, marking a 93.31% rise compared to the same quarter of the previous 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sterling Infrastructure. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate remained stagnant. Sterling Infrastructure is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Sterling Infrastructure is presently trading at a Forward P/E ratio of 33.39. Its industry sports an average Forward P/E of 25.04, so one might conclude that Sterling Infrastructure is trading at a premium comparatively.
Meanwhile, STRL's PEG ratio is currently 2.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Engineering - R and D Services stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 36% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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).