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Sterling Infrastructure (STRL) Registers a Bigger Fall Than the Market: Important Facts to Note

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The latest trading session saw Sterling Infrastructure (STRL - Free Report) ending at $82.81, denoting a -0.74% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily loss of 0.1%. Elsewhere, the Dow saw an upswing of 0.33%, while the tech-heavy Nasdaq depreciated by 0.3%.

Prior to today's trading, shares of the civil construction company had gained 6.42% over the past month. This has outpaced the Construction sector's gain of 5.15% and the S&P 500's gain of 5.78% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Sterling Infrastructure in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1, signifying a 51.52% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $526.9 million, indicating a 17.45% upward movement from the same quarter last year.

Investors should also note any recent changes to analyst estimates for Sterling Infrastructure. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.63% fall in the Zacks Consensus EPS estimate. As of now, Sterling Infrastructure holds a Zacks Rank of #4 (Sell).

Investors should also note Sterling Infrastructure's current valuation metrics, including its Forward P/E ratio of 17.73. This valuation marks a premium compared to its industry's average Forward P/E of 17.31.

It's also important to note that STRL currently trades at a PEG ratio of 0.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.26.

The Engineering - R and D Services industry is part of the Construction sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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