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.
Sterling Construction's (STRL) Backlog Helps Hit 52-Week High
Read MoreHide Full Article
Shares of Sterling Construction Co. Inc. (STRL - Free Report) touched a fresh 52-week high of $6.86 on Aug 19, before closing lower at $6.59. This upside was driven by its booking and backlog strength.
This Houston, TX-based heavy civil construction company has a market cap of $164.8 million. Average volume of shares traded over the last three months is approximately 85.4K. Its shares witnessed a solid one-year return of nearly 36% and year-to-date return of around 8.4%.
On Aug 1, Sterling Construction posted earnings of 9 cents per share for the second quarter of 2016, which compared favorably with a loss of 13 cents in the prior-year quarter. Revenues increased 6.9% year over year in the quarter, driven by higher project activity in Nevada, Hawaii and the Rocky Mountains.
The company expects the bottom line to improve further. Sterling Construction continues to see greater sequential investment in infrastructure projects at the federal, state, and local levels. Many of the projects that will be out for bid include roads, bridges, airports, and water projects in the $20 million to $80 million range, which fits in very well with its capabilities.
On Jun 30, 2016, Sterling Construction’s backlog was $810 million comapred with $243 million at the end of second-quarter 2015. Total backlog at the end of the second quarter, including projects where the company was the apparent low bidder but with the contracts yet to be signed, totaled $919 million, same as that at the end of the first quarter of 2016. The company expects the trend to persist throughout the balance of this year and beyond.
Sterling Construction also completed an equity offering during the quarter which raised $19 million. The company used the proceeds to service a large portion of expensive debt and to fund working capital needs. Thus, the company is poised to grow on its stronger balance sheet and improved financial flexibility.
Sterling Construction currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the sector include MasTec, Inc. (MTZ - Free Report) , EMCOR Group Inc. (EME - Free Report) and Boise Cascade Company (BCC - Free Report) . While MasTec sports a Zacks Rank #1 (Strong Buy), both EMCOR Group and Boise Cascade Company hold a Zacks Rank #2 (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
Sterling Construction's (STRL) Backlog Helps Hit 52-Week High
Shares of Sterling Construction Co. Inc. (STRL - Free Report) touched a fresh 52-week high of $6.86 on Aug 19, before closing lower at $6.59. This upside was driven by its booking and backlog strength.
This Houston, TX-based heavy civil construction company has a market cap of $164.8 million. Average volume of shares traded over the last three months is approximately 85.4K. Its shares witnessed a solid one-year return of nearly 36% and year-to-date return of around 8.4%.
STERLING CONSTR Price and Consensus
STERLING CONSTR Price and Consensus | STERLING CONSTR Quote
Factors to Consider
On Aug 1, Sterling Construction posted earnings of 9 cents per share for the second quarter of 2016, which compared favorably with a loss of 13 cents in the prior-year quarter. Revenues increased 6.9% year over year in the quarter, driven by higher project activity in Nevada, Hawaii and the Rocky Mountains.
The company expects the bottom line to improve further. Sterling Construction continues to see greater sequential investment in infrastructure projects at the federal, state, and local levels. Many of the projects that will be out for bid include roads, bridges, airports, and water projects in the $20 million to $80 million range, which fits in very well with its capabilities.
On Jun 30, 2016, Sterling Construction’s backlog was $810 million comapred with $243 million at the end of second-quarter 2015. Total backlog at the end of the second quarter, including projects where the company was the apparent low bidder but with the contracts yet to be signed, totaled $919 million, same as that at the end of the first quarter of 2016. The company expects the trend to persist throughout the balance of this year and beyond.
Sterling Construction also completed an equity offering during the quarter which raised $19 million. The company used the proceeds to service a large portion of expensive debt and to fund working capital needs. Thus, the company is poised to grow on its stronger balance sheet and improved financial flexibility.
Sterling Construction currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the sector include MasTec, Inc. (MTZ - Free Report) , EMCOR Group Inc. (EME - Free Report) and Boise Cascade Company (BCC - Free Report) . While MasTec sports a Zacks Rank #1 (Strong Buy), both EMCOR Group and Boise Cascade Company hold a Zacks Rank #2 (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 >>