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Great Lakes Dredge & Dock (GLDD) Stock Sinks As Market Gains: What You Should Know

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Great Lakes Dredge & Dock (GLDD - Free Report) closed the most recent trading day at $8.70, moving -1.58% from the previous trading session. This change lagged the S&P 500's 0.55% gain on the day. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq lost 0.14%.

The provider of dredging and dock-contracting services's stock has climbed by 4.12% in the past month, exceeding the Construction sector's loss of 5.58% and the S&P 500's loss of 6.22%.

The investment community will be paying close attention to the earnings performance of Great Lakes Dredge & Dock in its upcoming release. On that day, Great Lakes Dredge & Dock is projected to report earnings of $0.25 per share, which would represent a year-over-year decline of 19.35%. Simultaneously, our latest consensus estimate expects the revenue to be $209.9 million, showing a 5.66% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.69 per share and revenue of $775.45 million, which would represent changes of -17.86% and +1.67%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Great Lakes Dredge & Dock. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, the Zacks Consensus EPS estimate has remained steady. Great Lakes Dredge & Dock presently features a Zacks Rank of #3 (Hold).

Looking at valuation, Great Lakes Dredge & Dock is presently trading at a Forward P/E ratio of 12.9. This expresses a discount compared to the average Forward P/E of 14.67 of its industry.

We can also see that GLDD currently has a PEG ratio of 1.08. 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. The Building Products - Heavy Construction industry had an average PEG ratio of 1.55 as trading concluded yesterday.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 195, finds itself in the bottom 23% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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