Sterling Infrastructure (STRL) closed at $459.02 in the latest trading session, marking a +2.84% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 1.02%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
Heading into today, shares of the civil construction company had gained 12.12% over the past month, outpacing the Construction sector's gain of 2.73% and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Sterling Infrastructure in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.32, reflecting a 42.33% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $610.01 million, up 41.55% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $13.69 per share and revenue of $3.1 billion, indicating changes of +25.83% and +24.58%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Sterling Infrastructure. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Sterling Infrastructure possesses 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 32.6. For comparison, its industry has an average Forward P/E of 27.46, which means Sterling Infrastructure is trading at a premium to the group.
We can also see that STRL currently has a PEG ratio of 2.17. 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. The Engineering - R and D Services industry currently had an average PEG ratio of 2 as of yesterday's close.
The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).