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Sterling Construction Hits 52-Week High on Pipeline Strength
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Shares of Sterling Construction Co. Inc. (STRL - Free Report) hit a fresh 52-week high of $7.07 on Sep 9, before closing lower at $6.69. This Houston, TX-based heavy civil construction company has a market cap of $167.27 million. Average volume of shares traded over the last three months is approximately 81.64K. Its shares delivered a year-to-date return of around 10%.
Factors to Consider
Share price of Sterling Construction has been on the rise since it delivered sound second-quarter results on Aug 1. Earnings were at 9 cents per share reversing the prior year quarter’s loss of 13 cents. Revenues increased 6.9% year over year in the quarter, driven by higher project activity in Nevada, Hawaii and the Rocky Mountains.
The company anticipates 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.
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.
At second-quarter end, Sterling Construction’s backlog was $810 million compared 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 first-quarter 2016. The company expects the trend to persist throughout the balance of this year and beyond.
In .line with expectations, since the earnings release the company has won new contracts that position the company well to continue to add attractive, profitable opportunities to its backlog. One contract was around $21.5 million from the Colorado Department of Transportation (CDOT) to reconstruct the Crossroads Bridge on I-25 in Larimer County, CO while the other was a contract worth $21.7 million from Myers & Sons Construction for a wastewater treatment facility project in Malibu, California.
Sterling Construction currently has a Zacks Rank #3 (Hold).
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Sterling Construction Hits 52-Week High on Pipeline Strength
Shares of Sterling Construction Co. Inc. (STRL - Free Report) hit a fresh 52-week high of $7.07 on Sep 9, before closing lower at $6.69. This Houston, TX-based heavy civil construction company has a market cap of $167.27 million. Average volume of shares traded over the last three months is approximately 81.64K. Its shares delivered a year-to-date return of around 10%.
Factors to Consider
Share price of Sterling Construction has been on the rise since it delivered sound second-quarter results on Aug 1. Earnings were at 9 cents per share reversing the prior year quarter’s loss of 13 cents. Revenues increased 6.9% year over year in the quarter, driven by higher project activity in Nevada, Hawaii and the Rocky Mountains.
STERLING CONSTR Price and Consensus
STERLING CONSTR Price and Consensus | STERLING CONSTR Quote
The company anticipates 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.
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.
At second-quarter end, Sterling Construction’s backlog was $810 million compared 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 first-quarter 2016. The company expects the trend to persist throughout the balance of this year and beyond.
In .line with expectations, since the earnings release the company has won new contracts that position the company well to continue to add attractive, profitable opportunities to its backlog. One contract was around $21.5 million from the Colorado Department of Transportation (CDOT) to reconstruct the Crossroads Bridge on I-25 in Larimer County, CO while the other was a contract worth $21.7 million from Myers & Sons Construction for a wastewater treatment facility project in Malibu, California.
Sterling Construction currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks in the sector include MasTec, Inc. (MTZ - Free Report) , EMCOR Group Inc. (EME - Free Report) and Gibraltar Industries, Inc. (ROCK - Free Report) . While MasTec sports a Zacks Rank #1 (Strong Buy), both EMCOR Group and Gibraltar Industries carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>