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

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The most recent trading session ended with Sterling Infrastructure (STRL - Free Report) standing at $148.16, reflecting a +0.37% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.36%.

Coming into today, shares of the civil construction company had gained 29.86% in the past month. In that same time, the Construction sector gained 8.17%, while the S&P 500 gained 2.06%.

The investment community will be closely monitoring the performance of Sterling Infrastructure in its forthcoming earnings report. The company is forecasted to report an EPS of $1.68, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $599.9 million, reflecting a 7.06% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.66 per share and a revenue of $2.16 billion, indicating changes of +26.62% and +9.69%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Sterling Infrastructure. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sterling Infrastructure is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Sterling Infrastructure has a Forward P/E ratio of 26.1 right now. This represents a premium compared to its industry's average Forward P/E of 22.02.

Meanwhile, STRL's PEG ratio is currently 1.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Engineering - R and D Services industry had an average PEG ratio of 1.58.

The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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