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Sterling Infrastructure, Inc. (STRL - Free Report) recently won contracts worth $260 million for its E-Infrastructure Solutions segment.
Its E-infrastructure projects provide development services for large-scale sites like warehouses, data centers, e-commerce distribution centers, multi-use facilities and industrial facilities. This segment has shown robust growth, strengthening the company’s leading market position.
With regard to this, Sterling's CEO Joe Cutillo said, “Speed to market is key for our blue-chip customers, and our ability to timely execute large-scale and complex projects solidifies us as their trusted partner. With these wins, we ended 2022 in a strong position, and we believe the sustainable construction trends will continue throughout 2023.”
Price Performance
Shares of Sterling were up 1.49% on Feb 3 and have risen 34% in the past year, outperforming the Zacks Engineering - R and D Services industry’s growth of 23.5%.This Woodlands, TX-based company specializes in E-Infrastructure, Building and Transportation Solutions, principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain states, California and Hawaii.
Image Source: Zacks Investment Research
It mainly banks on business expansion strategy, solid project execution and the E-Infrastructure Solutions business prospect. The company has been navigating the ongoing supply chain and inflation challenges with growth in E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. Focus on the execution of strategic objectives also bodes well.
The U.S. government’s continuous flow of investments in next-generation factories for solar and EV battery plants along with the rise of data center ecosystem development is accelerating demand for the company.
The company’s revenues from the E-infrastructure segment increased 110.7% year over year to $255.53 million in third-quarter 2022. The backlog from this segment increased to $584.28 million as of Sep 30, 2022 from $432.61 million as of Dec 31, 2021, portraying potential long-term growth. In the said quarter, the organic growth of this segment was 40%, implying continuous strong demand for distribution centers, data centers, and warehouses.
The company is looking forward to inorganic tuck-ins in 2023 that will ensure increased services or goods to its existing footprint, especially in its E-infrastructure segment.
United Rentals currently sports a Zacks Rank #1. Shares of the company have gained 44.1% in the past year. The long-term earnings growth rate of the company is 16.3%.
The Zacks Consensus Estimate for URI’s 2024 sales and EPS suggests growth of 2% and 9.9%, respectively, from the year-ago period’s reported levels.
NVR currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.9%, on average. Its shares have rallied 20.7% in the past six months.
The Zacks Consensus Estimate for NVR’s 2024 sales and EPS suggests growth of 6% and 4.6%, respectively, from the year-ago period’s reported levels.
Dycom currently sports a Zacks Rank #1. DY has a trailing four-quarter earnings surprise of 142.9%, on average. Shares of the company have gained 4.6% in the past year.
The Zacks Consensus Estimate for DY’s fiscal 2024 sales and EPS suggests growth of 7.3% and 28.1%, respectively, from the year-ago period’s reported levels.
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Sterling's (STRL) E-Infrastructure Segment Wins $260M Contracts
Sterling Infrastructure, Inc. (STRL - Free Report) recently won contracts worth $260 million for its E-Infrastructure Solutions segment.
Its E-infrastructure projects provide development services for large-scale sites like warehouses, data centers, e-commerce distribution centers, multi-use facilities and industrial facilities. This segment has shown robust growth, strengthening the company’s leading market position.
With regard to this, Sterling's CEO Joe Cutillo said, “Speed to market is key for our blue-chip customers, and our ability to timely execute large-scale and complex projects solidifies us as their trusted partner. With these wins, we ended 2022 in a strong position, and we believe the sustainable construction trends will continue throughout 2023.”
Price Performance
Shares of Sterling were up 1.49% on Feb 3 and have risen 34% in the past year, outperforming the Zacks Engineering - R and D Services industry’s growth of 23.5%.This Woodlands, TX-based company specializes in E-Infrastructure, Building and Transportation Solutions, principally in the United States, mainly across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain states, California and Hawaii.
Image Source: Zacks Investment Research
It mainly banks on business expansion strategy, solid project execution and the E-Infrastructure Solutions business prospect. The company has been navigating the ongoing supply chain and inflation challenges with growth in E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. Focus on the execution of strategic objectives also bodes well.
The U.S. government’s continuous flow of investments in next-generation factories for solar and EV battery plants along with the rise of data center ecosystem development is accelerating demand for the company.
The company’s revenues from the E-infrastructure segment increased 110.7% year over year to $255.53 million in third-quarter 2022. The backlog from this segment increased to $584.28 million as of Sep 30, 2022 from $432.61 million as of Dec 31, 2021, portraying potential long-term growth. In the said quarter, the organic growth of this segment was 40%, implying continuous strong demand for distribution centers, data centers, and warehouses.
The company is looking forward to inorganic tuck-ins in 2023 that will ensure increased services or goods to its existing footprint, especially in its E-infrastructure segment.
Zacks Rank & Other Stocks to Consider
Sterling currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other top-ranked stocks in the Zacks Construction sector are United Rentals, Inc. (URI - Free Report) , NVR, Inc. (NVR - Free Report) and Dycom Industries, Inc. (DY - Free Report) .
United Rentals currently sports a Zacks Rank #1. Shares of the company have gained 44.1% in the past year. The long-term earnings growth rate of the company is 16.3%.
The Zacks Consensus Estimate for URI’s 2024 sales and EPS suggests growth of 2% and 9.9%, respectively, from the year-ago period’s reported levels.
NVR currently flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 6.9%, on average. Its shares have rallied 20.7% in the past six months.
The Zacks Consensus Estimate for NVR’s 2024 sales and EPS suggests growth of 6% and 4.6%, respectively, from the year-ago period’s reported levels.
Dycom currently sports a Zacks Rank #1. DY has a trailing four-quarter earnings surprise of 142.9%, on average. Shares of the company have gained 4.6% in the past year.
The Zacks Consensus Estimate for DY’s fiscal 2024 sales and EPS suggests growth of 7.3% and 28.1%, respectively, from the year-ago period’s reported levels.