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Sterling Infrastructure (STRL) Outperforms Broader Market: What You Need to Know

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Sterling Infrastructure (STRL - Free Report) closed at $76.61 in the latest trading session, marking a +0.54% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.22%. Meanwhile, the Dow experienced a rise of 0.36%, and the technology-dominated Nasdaq saw an increase of 0.32%.

Shares of the civil construction company witnessed a loss of 11.29% over the previous month, trailing the performance of the Construction sector with its loss of 0.75% and the S&P 500's gain of 1.61%.

Analysts and investors alike will be keeping a close eye on the performance of Sterling Infrastructure in its upcoming earnings disclosure. On that day, Sterling Infrastructure is projected to report earnings of $1.02 per share, which would represent year-over-year growth of 54.55%. Alongside, our most recent consensus estimate is anticipating revenue of $531.4 million, indicating a 18.45% upward movement from the same quarter last year.

Any recent changes to analyst estimates for Sterling Infrastructure should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Sterling Infrastructure presently features a Zacks Rank of #2 (Buy).

In terms of valuation, Sterling Infrastructure is presently being traded at a Forward P/E ratio of 16.09. This valuation marks a discount compared to its industry's average Forward P/E of 16.64.

One should further note that STRL currently holds a PEG ratio of 0.8. 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. The average PEG ratio for the Engineering - R and D Services industry stood at 1.2 at the close of the market yesterday.

The Engineering - R and D Services industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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