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Why Sterling Infrastructure (STRL) Dipped More Than Broader Market Today
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Sterling Infrastructure (STRL - Free Report) closed at $776.55 in the latest trading session, marking a -7.48% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
The civil construction company's shares have seen a decrease of 4.13% over the last month, not keeping up with the Construction sector's gain of 5.89% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Sterling Infrastructure will be of great interest to investors. The company is expected to report EPS of $5.2, up 93.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, up 74.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.12 per share and revenue of $3.96 billion, indicating changes of +75.74% and +59.15%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sterling Infrastructure. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.82% 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 43.89. This indicates a premium in contrast to its industry's Forward P/E of 38.44.
One should further note that STRL currently holds a PEG ratio of 2.93. 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 2.05.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why Sterling Infrastructure (STRL) Dipped More Than Broader Market Today
Sterling Infrastructure (STRL - Free Report) closed at $776.55 in the latest trading session, marking a -7.48% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
The civil construction company's shares have seen a decrease of 4.13% over the last month, not keeping up with the Construction sector's gain of 5.89% and the S&P 500's loss of 1.21%.
The upcoming earnings release of Sterling Infrastructure will be of great interest to investors. The company is expected to report EPS of $5.2, up 93.31% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.07 billion, up 74.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.12 per share and revenue of $3.96 billion, indicating changes of +75.74% and +59.15%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Sterling Infrastructure. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.82% 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 43.89. This indicates a premium in contrast to its industry's Forward P/E of 38.44.
One should further note that STRL currently holds a PEG ratio of 2.93. 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 2.05.
The Engineering - R and D Services industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 36% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.