Granite Construction Incorporated (GVA Quick QuoteGVA - Free Report) stock’s performance has been impressive in the past year, with a 41.4% rise compared with the Zacks Building Products - Heavy Construction industry’s 16.8% growth. Meanwhile, the Zacks Construction sector declined 3.4%, while the overall market, represented by the Zacks S&P 500 composite, has risen 9.3%.

This Watsonville, CA-based infrastructure contractor expects strong opportunities across both public and private markets to support its growth in the upcoming period. The company is securing high-quality projects, which are expected to support its growth and margin targets. Meanwhile, it continues to manage risks from tariff revisions and commodity prices through regular market monitoring and mitigation efforts.

GVA stock has also outperformed some other similar players in the past year, including MasTec, Inc. (MTZ Quick QuoteMTZ - Free Report) , EMCOR Group, Inc. (EME Quick QuoteEME - Free Report) and Dycom Industries, Inc. (DY Quick QuoteDY - Free Report) . In the said time frame, MasTec, EMCOR and Dycom have gained 38.2%, 17.7% and 26.6%, respectively.

GVA’s Past Year’s Price Performance

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GVA Stock Trading Above 50 & 200-Day SMA

Technical indicators suggest continued strong performance for Granite. From the graphical representation given below, it can be observed that GVA stock is trading above both 50 and 200-day simple moving averages, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in its financial health and prospects.

Image Source: Zacks Investment Research

Let us take a closer look at the factors supporting Granite’s performance and what this could indicate for the stock going ahead.

Robust Demand in Both Public and Private Markets

Granite has been witnessing solid activity across both public and private markets. The bidding landscape has remained strong, with the company securing more projects compared with the same period last year, continuing a multi-year trend of steady progress. On May 22, 2025, the company secured a $26 million contract from San Francisco International Airport for taxiway upgrades. (read more: Granite Secures $26M Contract for Taxiway Upgrades From SFO).

The company’s Committed and Awarded Projects (“CAP”) are benefiting from the strong public market, supported by the IIJA and steady state funding across regions. The overall market has aligned with expectations for 2025. Granite has seen a higher volume of secured work in the first quarter of 2025 on a year-over-year basis.

GVA’s CAP Portfolio Continues to Support Expansion

Granite is focusing on growing a high-quality CAP portfolio on the back of a positive public funding environment and a resilient private market. The company remains focused on best-value projects where it can leverage the established relationships in home markets to deliver larger projects while minimizing risk.

CAP totaled $5.7 billion in the first quarter of 2025, reflecting 7.5% sequential growth from $5.3 billion at 2024-end and 3.6% year-over-year growth from $5.5 billion. This uptrend can be attributed to the increased public spending trends, resulting in favorable bidding opportunities for the company, despite the ongoing macro headwinds. Amid the current market conditions, it continues to expect significant opportunities to expand CAP throughout the year and meet long-term financial targets.

Enhancing Market Presence Through M&A and Investment

The company continues to pursue acquisitions that enhance its core markets and expand geographic reach. It remains committed to investing in the materials business to improve capacity and efficiency. From 2022 to 2024, the company increased its reserves by 56% to 1.6 billion tons through organic growth and acquisitions. During the said period, it added 11 new aggregate crushing plants and 10 asphalt plants.

The current market environment supports ongoing efforts to identify and complete targeted deals aligned with these goals. The company focuses on acquiring vertically integrated, materials-focused businesses and smaller bolt-on acquisitions. Granite maintains its target of completing two to three deals in 2025, indicating a steady approach toward disciplined and strategic expansion.

Estimate Revision of GVA Stock

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The Zacks Consensus Estimate for Granite’s 2025 earnings has trended upward in the past 30 days. The estimated figure indicates growth of 23.2% from a year ago.

GVA Trading at a Discount

From a valuation standpoint, the company is currently trading at a discount to its industry peers on a forward 12-month price-to-earnings ratio basis. The discounted valuation indicates that despite the stock price increase in the past year, it remains an attractive option for investors looking for a suitable entry point.

Image Source: Zacks Investment Research

Furthermore, GVA also trades lower than some of its industry peers, such as MasTec, EMCOR and Dycom, which trade at 23.28X, 19X and 15.67X, respectively.

Should You Buy Granite Stock Now?

Granite continues to benefit from strong market fundamentals and a solid pipeline of awarded projects. Strategic investments in core operations and a steady flow of project wins support its growth outlook. The company’s approach to expansion through targeted acquisitions and operational improvements further strengthens its position. With positive earnings estimate revisions for 2025 and a discounted valuation, this Zacks Rank #2 (Buy) company may offer an appealing opportunity for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.