Everus Construction Group ( ECG ), which currently serves as a mid-cap proxy on construction services across the US, was formerly part of the energy delivery specialist MDU Resources Group, Inc. ( MDU ), andAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from S ...

On January 29, Managed Asset Portfolios disclosed a sale of 120,214 shares of Everus Construction Group (NYSE:ECG), an estimated $10.76 million trade based on quarterly average pricing. What happened According to an SEC filing dated January 29, Managed Asset Portfolios reduced its position in Everus Construction Group by 120,214 shares during the fourth quarter. The estimated value of shares sold was $10.76 million, calculated using the average closing price over the quarter. At quarter-end, the ECG posi ...

Participants also can listen to the webcast by phone: BISMARCK, N.D.--(BUSINESS WIRE)--Everus Construction Group (NYSE: ECG) will issue fourth quarter and full-year 2025 results after the stock market closes Feb. 24. Company leadership will host a webcast at 10:30 a.m. EST Feb. 25 to review financial results, discuss recent events and conduct a question-and-answer session. The webcast and accompanying presentation materials will be accessible under the "Events & Presentations†tab on investors.everus.com. Th ...

Core Insights - Three stocks with strong momentum and a Zacks Rank 1 are highlighted for investors: Lumentum Holdings Inc., FIGS, Inc., and Everus Construction Group, Inc. [1][2][3] Company Summaries - **Lumentum Holdings Inc. (LITE)**: - Zacks Consensus Estimate for current year earnings increased by 11.1% over the last 60 days - Shares gained 108.7% over the last three months, while the S&P 500 declined by 5.8% - Momentum Score of A [1] - **FIGS, Inc. (FIGS)**: - Zacks Consensus Estimate for current year earnings increased by 33.3% over the last 60 days - Shares gained 36.4% over the past three months, compared to the S&P 500's decline of 5.9% - Momentum Score of A [2] - **Everus Construction Group, Inc. (ECG)**: - Zacks Consensus Estimate for current year earnings increased by 11.6% over the last 60 days - Shares gained 38.0% over the last three months, while the S&P 500 declined by 5.9% - Momentum Score of A [3]

Core Viewpoint - Everus Construction Group, Inc. (ECG) has experienced a bearish trend with an 8.5% loss over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottom in a downtrend, where the stock opens lower, makes a new low, but then finds support and closes near its opening price, signaling that bears may have lost control [4][5]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for ECG, with a 21.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - ECG holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Core Insights - The U.S. equity markets have experienced volatility, with gains in blue-chip tech companies offset by concerns over AI firm valuations, leading to expectations of a market correction [2] - Investors are anxious about the Federal Reserve's potential actions regarding interest rates amid a government shutdown that has created a data vacuum [2] - The upcoming September nonfarm payrolls report is highly anticipated for insights into economic trends and Federal Reserve decisions [3] Momentum Investing Strategy - Momentum investing is characterized by "buying high and selling higher," capitalizing on established trends in stock prices [4] - This strategy has historically generated alpha across various market conditions, though it requires skill to identify trends effectively [5] - A screening strategy has been developed to identify stocks with long-term price momentum and short-term pullbacks [5] Screening Parameters - The screening process selects the top 50 stocks based on the best percentage price change over the past 52 weeks [6] - From these, the 10 worst performers over the last week are chosen to identify those experiencing short-term pullbacks [7] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized for selection [8] Selected Stocks - Seagate Technology Holdings plc (STX) has seen a 169.4% increase over the past year but a recent decline of 11.1%, with a Momentum Score of B [12] - Robinhood Markets, Inc. (HOOD) has surged 231.3% in the past year but dropped 14.6% in the last week, holding a Momentum Score of A [14] - Everus Construction Group, Inc. (ECG) has increased by 46.7% over the past year but declined 13.7% recently, also with a Momentum Score of A [15]

Core Viewpoint - Everus Construction Group, Inc. (ECG) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating a positive earnings outlook and potential for continued stock price appreciation [1][2]. Earnings Estimate Revisions - Analysts have increased their earnings estimates for ECG, reflecting growing optimism about the company's financial prospects, which is expected to positively influence its stock price [2][3]. - The current-quarter earnings estimate is $0.72 per share, representing a 7.5% increase from the previous year, with a notable 25.44% rise in the Zacks Consensus Estimate over the last 30 days due to two upward revisions [6]. - For the full year, the earnings estimate stands at $3.26 per share, marking a 16.0% increase from the prior year, with a 10.71% boost in the consensus estimate over the same period [7][8]. Zacks Rank and Performance - ECG has achieved a Zacks Rank 1 (Strong Buy), indicating strong potential for outperformance based on the positive earnings estimate revisions [9]. - Historically, stocks with a Zacks Rank 1 have generated an average annual return of +25% since 2008, suggesting that ECG may follow a similar trend [3][9]. Recent Stock Performance - ECG shares have appreciated by 18.1% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects driven by favorable estimate revisions [10].

Core Viewpoint - Everus Construction Group, Inc. (ECG) has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive earnings outlook that may lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for ECG suggest an improvement in the company's underlying business, which could attract investor interest and drive the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10]. Earnings Estimate Revisions for ECG - Analysts have raised their earnings estimates for ECG, with the Zacks Consensus Estimate increasing by 29.4% over the past three months [8]. - The expected earnings per share for ECG for the fiscal year ending December 2025 is $3.26, showing no year-over-year change [8].

Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Earnings Estimates - Encore Capital Group, Inc. (ECPG) has seen its earnings estimate increase by 18.5% over the last 60 days [1] - PJT Partners Inc. (PJT) has experienced a 9.6% increase in its earnings estimate over the last 60 days [2] - Everus Construction Group, Inc. (ECG) has had its earnings estimate rise by 11.6% in the past 60 days [3] - United Fire Group, Inc. (UFCS) has seen a significant increase of 29.7% in its earnings estimate over the last 60 days [3] - BioLife Solutions, Inc. (BLFS) has experienced the largest increase, with a 40% rise in its earnings estimate over the last 60 days [4]

Revenue and Income - Total operating revenues for the three months ended September 30, 2025, were $986.8 million, a 29.6% increase from $760.9 million in the same period of 2024[84][88] - Total contract revenues for the nine months ended September 30, 2025, reached $2.75 billion, up 30.6% from $2.11 billion in the same period of 2024[86][87] - The company recognized a net increase in revenues of $12.7 million for the three months ended September 30, 2025, related to previously recognized deferred revenues[95] - For the three months ended September 30, 2025, consolidated total operating revenues were $990.724 million, an increase from $765.399 million in the same period of 2024, representing a growth of approximately 29.5%[158] - Net income for the three months ended September 30, 2025, was $56,977,000, compared to $41,767,000 in 2024, reflecting a 36.4% increase[137] - Basic EPS for the three months ended September 30, 2025, was $1.12, up from $0.82 in 2024, marking a 36.6% increase[137] - For the nine months ended September 30, 2025, total consolidated income before income taxes was $188.513 million, compared to $138.762 million for the same period in 2024, marking a growth of approximately 35.8%[159] Costs and Expenses - Costs incurred on uncompleted contracts totaled $7.46 billion as of September 30, 2025, compared to $7.03 billion as of December 31, 2024[90] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $51.8 million, an increase of $15.6 million, or 43.1%, from $36.2 million for the same period in 2024[212] - Interest expense for the three months ended September 30, 2025, was $5.4 million, an increase of $2.6 million, or 92.9%, from $2.8 million for the same period in 2024[215] - Total stock-based compensation expense for the nine months ended September 30, 2025, was $4.8 million, compared to $1.0 million for the same period in 2024[140] - Interest expense for the nine months ended September 30, 2025, was $16.4 million, an increase of $7.6 million, or 86.4%, from $8.8 million for the same period in 2024[229] Assets and Liabilities - The company reported a net contract liability of $19.4 million as of September 30, 2025, compared to $40.3 million as of December 31, 2024, indicating improved cash flow management[90][93] - Remaining performance obligations amounted to $2.69 billion as of September 30, 2025, with $2.23 billion expected to be recognized within 12 months[97] - Contract assets increased to $250.5 million as of September 30, 2025, from $167.0 million as of December 31, 2024[93][94] - The company has a total long-term debt of $270.1 million as of September 30, 2025, down from $280.6 million as of December 31, 2024[114] - Working capital increased to $523.5 million as of September 30, 2025, up from $403.9 million as of December 31, 2024[284] Financial Ratios and Covenants - The Credit Agreement requires the company to maintain a maximum consolidated total net leverage ratio of 3.00 to 1.00 and a minimum interest coverage ratio of 3.00 to 1.00[125] - As of September 30, 2025, the consolidated total net leverage ratio was 3.00:1.00, with an option to increase to 3.50:1.00 for qualifying acquisitions[280] - Compliance with financial covenants was maintained as of both September 30, 2025, and December 31, 2024[283] Backlog and Project Opportunities - Backlog as of September 30, 2025, was estimated at $2,382.5 million, a decrease from $2,946.2 million as of December 31, 2024[264] - E&M backlog increased to $2,087.5 million as of September 30, 2025, compared to $2,570.4 million as of December 31, 2024, reflecting growth in the commercial end market[265] - The Company reported strong project opportunities in specialty contracting markets, particularly in data center, undergrounding, and hospitality work, contributing to a robust backlog[195] Customer Concentration and Risks - Revenue from a single customer accounted for approximately 17% of total operating revenues for the three months ended September 30, 2025, indicating a significant customer concentration risk[161] - For the E&M segment, two customers accounted for approximately 22% and 11% of total E&M segment revenues for the three months ended September 30, 2025, highlighting reliance on key customers[162] - Trade receivables from a single customer accounted for approximately 17% of total trade receivables as of September 30, 2025, indicating potential credit risk exposure[164] Legal and Regulatory Matters - The company accrued estimated litigation-related contingent liabilities of $3.7 million as of September 30, 2025, indicating potential financial exposure from ongoing legal matters[171] Market Conditions and Future Outlook - The Company anticipates continued increases in insurance costs due to economic inflation and rising losses in the insurance industry, impacting future project budgets and profitability[191] - The U.S. construction services industry is highly fragmented, with competition influenced by technical expertise, service pricing, and operational resources[193] - The company is focused on growing total revenues, expanding margins, managing costs, and generating cash to increase operating income despite rising costs[192]