We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Granite Construction at 52-Week High on Backlog, Projects
Read MoreHide Full Article
Shares of Granite Construction Inc. (GVA - Free Report) scaled a fresh 52-week high of $49.88 on Jul 13, and eventually closed a notch lower at $49.22. The stock price appreciation came on the back of benefits from sound backlog and award wins. The company has delivered a year-to-date return of about 15.43%.
The Watsonville, CA-based infrastructure contractor and construction materials producing company has a market cap of $1.95 billion. Average volume of shares traded over the last three months was approximately 298K.
Strengths of Granite Construction
Granite Construction’s solid backlog trends and relentless focus on execution continue to provide opportunities for top- and bottom-line growth for Granite Construction. In the first quarter, contract backlog was at a record $3.4 billion, up 15.3% year-over-year. This, along with the eighth consecutive quarter of year-over-year margin expansion in the Construction segment, provides a strong base for growth in 2016.
With strong committed volumes across geographies in the Construction Materials segment, the segment will maintain the momentum in 2016. The company’s vertically integrated business and Kenny Construction remain on track to drive growth in 2016. Large Projects teams across the country continue to focus on improving project execution to deliver financial results. Granite Construction’s projections for 2016 stand at mid-single digit consolidated revenue growth and consolidated EBITDA margin of 6%–8%.
Since the first quarter, Granite Construction continues to win projects, confirming its positive outlook. In mid-June, the City of Chicago awarded four sewer renewal contracts worth $119 million to the Kenny Construction Company. These contracts are part of a multi-year program to renovate Chicago’s aging brick sewers. The City of Chicago has over 4,600 miles of sewer, and on an annual basis, renews approximately 50 miles of 8-inch–48-inch diameter sewer pipes and 5,000 sewer structures.
In early June, Granite Construction was awarded a $20 million contract by the Alaska Department of Transportation for the rehabilitation of the taxiways at the Anchorage International Airport. Granite will book the project into backlog during second-quarter 2016.
Granite Construction currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the same sector are Dycom Industries Inc. (DY - Free Report) , MasTec, Inc. (MTZ - Free Report) and NCI Building Systems Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Granite Construction at 52-Week High on Backlog, Projects
Shares of Granite Construction Inc. (GVA - Free Report) scaled a fresh 52-week high of $49.88 on Jul 13, and eventually closed a notch lower at $49.22. The stock price appreciation came on the back of benefits from sound backlog and award wins. The company has delivered a year-to-date return of about 15.43%.
The Watsonville, CA-based infrastructure contractor and construction materials producing company has a market cap of $1.95 billion. Average volume of shares traded over the last three months was approximately 298K.
Strengths of Granite Construction
Granite Construction’s solid backlog trends and relentless focus on execution continue to provide opportunities for top- and bottom-line growth for Granite Construction. In the first quarter, contract backlog was at a record $3.4 billion, up 15.3% year-over-year. This, along with the eighth consecutive quarter of year-over-year margin expansion in the Construction segment, provides a strong base for growth in 2016.
GRANITE CONSTRU Price and Consensus
GRANITE CONSTRU Price and Consensus | GRANITE CONSTRU Quote
With strong committed volumes across geographies in the Construction Materials segment, the segment will maintain the momentum in 2016. The company’s vertically integrated business and Kenny Construction remain on track to drive growth in 2016. Large Projects teams across the country continue to focus on improving project execution to deliver financial results. Granite Construction’s projections for 2016 stand at mid-single digit consolidated revenue growth and consolidated EBITDA margin of 6%–8%.
Since the first quarter, Granite Construction continues to win projects, confirming its positive outlook. In mid-June, the City of Chicago awarded four sewer renewal contracts worth $119 million to the Kenny Construction Company. These contracts are part of a multi-year program to renovate Chicago’s aging brick sewers. The City of Chicago has over 4,600 miles of sewer, and on an annual basis, renews approximately 50 miles of 8-inch–48-inch diameter sewer pipes and 5,000 sewer structures.
In early June, Granite Construction was awarded a $20 million contract by the Alaska Department of Transportation for the rehabilitation of the taxiways at the Anchorage International Airport. Granite will book the project into backlog during second-quarter 2016.
Granite Construction currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks from the same sector are Dycom Industries Inc. (DY - Free Report) , MasTec, Inc. (MTZ - Free Report) and NCI Building Systems Inc. . All of these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>