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Sterling Infrastructure (STRL) Increases Despite Market Slip: Here's What You Need to Know

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Sterling Infrastructure (STRL - Free Report) closed the latest trading day at $112.03, indicating a +1.89% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq appreciated by 0.17%.

The civil construction company's stock has climbed by 30.04% in the past month, exceeding the Construction sector's gain of 10.87% and the S&P 500's gain of 5.34%.

The investment community will be paying close attention to the earnings performance of Sterling Infrastructure in its upcoming release. The company's earnings per share (EPS) are projected to be $0.82, reflecting a 28.13% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $453.3 million, up 12.32% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.98 per share and revenue of $2.2 billion, which would represent changes of +11.41% and +11.68%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Sterling Infrastructure. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 5.84% rise in the Zacks Consensus EPS estimate. Right now, Sterling Infrastructure possesses a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Sterling Infrastructure is presently trading at a Forward P/E ratio of 22.08. For comparison, its industry has an average Forward P/E of 20.24, which means Sterling Infrastructure is trading at a premium to the group.

One should further note that STRL currently holds a PEG ratio of 1.1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Engineering - R and D Services industry held an average PEG ratio of 1.39.

The Engineering - R and D Services industry is part of the Construction sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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