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Sterling Infrastructure (STRL) Stock Moves -2.07%: What You Should Know

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In the latest close session, Sterling Infrastructure (STRL - Free Report) was down 2.07% at $224.64. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.

Coming into today, shares of the civil construction company had gained 19.83% in the past month. In that same time, the Construction sector gained 3.5%, while the S&P 500 gained 5.05%.

The investment community will be closely monitoring the performance of Sterling Infrastructure in its forthcoming earnings report. The company is expected to report EPS of $2.26, up 35.33% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $555.13 million, reflecting a 4.75% fall from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.61 per share and revenue of $2.09 billion. These totals would mark changes of +41.15% and -1.22%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Sterling Infrastructure. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Sterling Infrastructure presently features a Zacks Rank of #2 (Buy).

In the context of valuation, Sterling Infrastructure is at present trading with a Forward P/E ratio of 26.66. This denotes a premium relative to the industry average Forward P/E of 20.07.

One should further note that STRL currently holds a PEG ratio of 1.78. 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. STRL's industry had an average PEG ratio of 1.77 as of yesterday's close.

The Engineering - R and D Services industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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