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Here's How Stantec (STN) Gained 38% in the Year-to-Date Period
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Stantec Inc. (STN - Free Report) has gained 37.6% in the past six months, outperforming 18.1% growth of the industry it belongs to.
Reasons Behind the Rally
Stantec is dedicated to its three-year strategic plan unveiled in December 2019 with the objective of achieving growth. This plan revolves around a client-centric approach and is driven by four key pillars, which are excellence, innovation, people, and growth. Due to pandemic-related lockdowns causing a one-year delay in operations, Stantec now expects to reach its originally established financial targets by the year 2023.
Stantec's growth strategy heavily relies on acquisitions, enabling it to diversify its services, expand its presence in various regions, and bolster the workforce. Moreover, these acquisitions have been a positive driver for the company's revenue growth and operating cash flow. In 2022, the company successfully executed two tuck-in acquisitions, which align with its strategy. The first acquisition was of Barton Willmore, a UK-based planning and design consulting firm with 300 employees. Barton Willmore plays a vital role in various sectors, including residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration, serving both public and private clients.
The second acquisition was L2P, a Philadelphia-based firm specializing in architecture, interior design, and planning, employing 40 professionals. L2P is recognized as a trusted advisor in markets such as science and technology, commercial workplace, higher education, residential, and hospitality. These acquisitions contribute to Stantec's strategic growth initiatives.
Stantec has consistently demonstrated its commitment to rewarding shareholders through a combination of dividend payments and share repurchases. In 2022, the company distributed $78.2 million in dividends and repurchased 1.08 billion shares for $65.3 million. Similarly, in 2021, it allocated $72.3 million for dividends and repurchased 939.5 million shares at a cost of $50.7 million. In 2020, Stantec disbursed $68 million in dividends and conducted share repurchases of 2.05 billion shares, amounting to $78.3 million. These shareholder-friendly actions underscore Stantec's dedication to enhancing shareholder value and signify the confidence in the strength of its business.
Zacks Rank & Stocks to Consider
Stantec currently carries a Zacks Rank #3 (Hold).
You can check the following better-ranked stocks from the Business Services sector.
Verisk Analytics(VRSK - Free Report) has beaten the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, which reflects a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago figure. VRSK currently holds a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data(ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge(BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings calls for a rise of 7.2% and 8.8%, respectively.
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Here's How Stantec (STN) Gained 38% in the Year-to-Date Period
Stantec Inc. (STN - Free Report) has gained 37.6% in the past six months, outperforming 18.1% growth of the industry it belongs to.
Reasons Behind the Rally
Stantec is dedicated to its three-year strategic plan unveiled in December 2019 with the objective of achieving growth. This plan revolves around a client-centric approach and is driven by four key pillars, which are excellence, innovation, people, and growth. Due to pandemic-related lockdowns causing a one-year delay in operations, Stantec now expects to reach its originally established financial targets by the year 2023.
Stantec's growth strategy heavily relies on acquisitions, enabling it to diversify its services, expand its presence in various regions, and bolster the workforce. Moreover, these acquisitions have been a positive driver for the company's revenue growth and operating cash flow. In 2022, the company successfully executed two tuck-in acquisitions, which align with its strategy. The first acquisition was of Barton Willmore, a UK-based planning and design consulting firm with 300 employees. Barton Willmore plays a vital role in various sectors, including residential, logistics, retail, infrastructure, energy, higher education, and urban regeneration, serving both public and private clients.
The second acquisition was L2P, a Philadelphia-based firm specializing in architecture, interior design, and planning, employing 40 professionals. L2P is recognized as a trusted advisor in markets such as science and technology, commercial workplace, higher education, residential, and hospitality. These acquisitions contribute to Stantec's strategic growth initiatives.
Stantec Inc. Price
Stantec Inc. price | Stantec Inc. Quote
Stantec has consistently demonstrated its commitment to rewarding shareholders through a combination of dividend payments and share repurchases. In 2022, the company distributed $78.2 million in dividends and repurchased 1.08 billion shares for $65.3 million. Similarly, in 2021, it allocated $72.3 million for dividends and repurchased 939.5 million shares at a cost of $50.7 million. In 2020, Stantec disbursed $68 million in dividends and conducted share repurchases of 2.05 billion shares, amounting to $78.3 million. These shareholder-friendly actions underscore Stantec's dedication to enhancing shareholder value and signify the confidence in the strength of its business.
Zacks Rank & Stocks to Consider
Stantec currently carries a Zacks Rank #3 (Hold).
You can check the following better-ranked stocks from the Business Services sector.
Verisk Analytics(VRSK - Free Report) has beaten the Zacks Consensus Estimate in three of the four previous quarters and matched on one instance, with an average surprise of 9.9% The consensus mark for 2023 revenues is pegged at $2.66 billion, which reflects a decrease of 8.2% from the year-ago figure. Earnings are pegged at $5.71 per share for 2023, which is 14% above the year-ago figure. VRSK currently holds a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data(ADP - Free Report) currently has a Zacks Rank of 2. The company beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge(BR - Free Report) currently carries a Zacks Rank of 2. It beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimate for fiscal 2024 revenues and earnings calls for a rise of 7.2% and 8.8%, respectively.