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Sterling Infrastructure (STRL) Ascends While Market Falls: Some Facts to Note

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Sterling Infrastructure (STRL - Free Report) closed at $79.73 in the latest trading session, marking a +1.7% move from the prior day. This change outpaced the S&P 500's 0.37% loss on the day. Meanwhile, the Dow experienced a drop of 0.62%, and the technology-dominated Nasdaq saw a decrease of 0.19%.

Prior to today's trading, shares of the civil construction company had lost 0.23% over the past month. This has was narrower than the Construction sector's loss of 0.65% and lagged the S&P 500's gain of 1.56% in that time.

Investors will be eagerly watching for the performance of Sterling Infrastructure in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.02, marking a 54.55% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $531.4 million, indicating a 18.45% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Sterling Infrastructure. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Sterling Infrastructure possesses a Zacks Rank of #2 (Buy).

In terms of valuation, Sterling Infrastructure is presently being traded at a Forward P/E ratio of 16.56. This indicates a discount in contrast to its industry's Forward P/E of 16.74.

It is also worth noting that STRL currently has a PEG ratio of 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.2.

The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 41% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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