Great Lakes Dredge & Dock (GLDD) shares ended the last trading session 12.7% higher at $15.44. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.2% gain over the past four weeks. GLDD stock is expected to have surged on the back of robust opportunities for coastal protection and dredging services, mainly backed by the government’s public spending strength. Increasing backlog trends and improving business prospects, ...

Core Viewpoint - Three stocks are highlighted with strong growth characteristics and buy ranks for investors to consider, specifically The Allstate Corporation, Great Lakes Dredge & Dock Corporation, and Alarm.com Holdings, Inc. [1][2][3] Company Summaries The Allstate Corporation (ALL) - Carries a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 23.7% over the last 60 days - PEG ratio of 0.45 compared to the industry average of 1.78 - Possesses a Growth Score of A [1] Great Lakes Dredge & Dock Corporation (GLDD) - Carries a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 6.9% over the last 60 days - PEG ratio of 1.01 compared to the industry average of 3.07 - Possesses a Growth Score of A [2] Alarm.com Holdings, Inc. (ALRM) - Carries a Zacks Rank 1 - Zacks Consensus Estimate for current year earnings increased by 5.5% over the last 60 days - PEG ratio of 1.51 compared to the industry average of 2.44 - Possesses a Growth Score of B [3]

Group 1: RenaissanceRe (RNR) - RenaissanceRe provides property-catastrophe reinsurance globally on an excess of loss basis [1] - The company has a Zacks Rank 1 (Strong Buy) and a Growth Score of A [2] - The Zacks Consensus Estimate for its current year earnings has increased by 12.9% over the last 60 days [1] Group 2: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US [2] - The company also holds a Zacks Rank 1 and a Growth Score of A [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.9% over the last 60 days [2] Group 3: Phibro Animal Health (PAHC) - Phibro Animal Health is a leading global diversified animal health and mineral nutrition company [3] - The company carries a Zacks Rank 1 and has a Growth Score of B [4] - The Zacks Consensus Estimate for its current year earnings has increased by 9.1% over the last 60 days [3]

Core Insights - The article highlights three stocks with strong growth characteristics and buy rankings for investors to consider as of December 31st Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and coastline renourishment [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 6.9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 1, significantly lower than the industry average of 3.08, and possesses a Growth Score of A [2] Group 2: Ciena (CIEN) - Ciena is a leading provider of optical networking equipment, software, and services [2] - The company also carries a Zacks Rank of 1 and has experienced an 18.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Ciena has a PEG ratio of 1.11 compared to the industry average of 5.12, and it holds a Growth Score of A [2] Group 3: Insulet (PODD) - Insulet is a leading developer, manufacturer, and marketer of the Omnipod Insulin Management System [3] - The company has a Zacks Rank of 1 and has seen a 6.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - Insulet has a PEG ratio of 2.02, which is lower than the industry average of 2.43, and it also possesses a Growth Score of A [3]

Industry Overview - The U.S. marine construction and dredging market is benefiting from ongoing infrastructure spending, coastal protection needs, and port expansion activities [1] - Recent monetary easing may support infrastructure activity by lowering financing costs, which can enhance project execution and revenue visibility through 2026 [2] Company Analysis: Great Lakes Dredge & Dock Corporation (GLDD) - GLDD reported a 12.8% year-over-year increase in contract revenues for the first nine months of 2025, totaling $631.8 million, driven by stronger activity levels and improved project performance [3][8] - The company has a strong backlog of $935 million, with a significant portion related to capital and coastal protection work, and an additional $194 million in low bids pending [4] - GLDD's profitability has improved due to higher-margin projects, efficient execution, and disciplined cost control, alongside a modernized fleet [3][6] - Despite challenges such as a normalized bid market and regulatory issues, GLDD is well-positioned for 2026 with strong liquidity and a diversified project mix [5][6] Company Analysis: Orion Group Holdings, Inc. (ORN) - ORN operates in marine and concrete services, benefiting from balanced exposure to public and private investments, which provides demand stability [7] - The company reported a revenue increase of approximately 7% year-over-year to $619 million, supported by steady activity across its key segments [9] - ORN increased its bonding capacity by $400 million in October 2025, enhancing its ability to pursue larger and more complex projects [11] - Challenges for ORN include earnings pressure from project timing variability and softer profitability in select concrete projects [10] Comparative Analysis - GLDD shows stronger near-term operating momentum with a higher-quality backlog and improving profitability, while ORN has a solid pipeline but faces more variability in margins and project timing [19] - GLDD is trading at a discount compared to ORN on a forward 12-month price-to-earnings (P/E) ratio basis [13] - The Zacks Consensus Estimate for GLDD's 2026 EPS indicates a slight decline of 0.2%, while ORN's estimate implies a significant year-over-year improvement of 44.7% [16][18]

Core Insights - Net profit is a crucial indicator of a company's financial health, reflecting its ability to convert sales into profits [1] - A low profit margin indicates higher risks, while companies like Great Lakes Dredge & Dock Corporation (GLDD), Strattec Security Corporation (STRT), Natural Gas Services Group, Inc. (NGS), and Standard Motor Products, Inc. (SMP) demonstrate solid net profit margins [2] - A higher net profit margin compared to peers provides a competitive edge and attracts investors and skilled employees [4] Financial Metrics - Net Profit Margin is calculated as Net Profit/Sales * 100, serving as a reference for assessing operational strength and cost control [3] - A healthy net profit margin and solid EPS growth are essential for maximizing returns [7] Screening Criteria - Companies with a net margin of at least 0% indicate solid profitability [8] - Positive percentage change in EPS indicates earnings growth [8] - A Zacks Rank of 1 or 2 suggests strong performance potential [10] Selected Companies - GLDD is the largest provider of dredging services in the U.S., with a Zacks Rank of 1 and a VGM Score of A; its 2026 earnings estimate has increased by $0.10 to $1.09 per share [10][11] - STRT designs and manufactures automotive locks, holding a Zacks Rank of 1 and a VGM Score of A; its 2026 earnings estimate has risen by 23.3% to $5.24 per share [12][13] - NGS produces natural gas compressors, also with a Zacks Rank of 1 and a VGM Score of B; its 2026 earnings estimate has increased by 14.1% to $2.11 per share [13][14] - SMP manufactures automotive replacement parts, currently holding a Zacks Rank of 2 and a VGM Score of A; its 2026 earnings estimate has risen by $0.04 to $4.31 per share [15][16]

Core Viewpoint - Great Lakes Dredge & Dock Corporation (GLDD) is positioned to benefit from increased coastal and port infrastructure spending in the U.S., with a significant dredging backlog indicating strong demand for capital and coastal protection projects [2][10]. Group 1: Market Opportunities - As of September 30, 2025, GLDD's total dredging backlog is $934.5 million, with approximately 84% allocated to capital and coastal protection projects, highlighting the market's strength in these areas [2][10]. - Notable projects include the Port Arthur LNG Phase 1, the Brownsville Ship Channel project, and Woodside Louisiana LNG, with dredging expected to start in early 2026 [3]. - Despite challenges from the current government shutdown, GLDD's operations remain unaffected, with ongoing bidding and payments [3]. Group 2: Company Developments - GLDD is enhancing its revenue visibility through a multi-year fleet modernization strategy, recently adding its sixth hopper dredge, Amelia Island, which optimizes operations for shallow and narrow coastal environments [4]. - The upcoming delivery of the Acadia in early 2026 will expand GLDD's market into offshore energy and subsea infrastructure protection, providing additional long-term growth opportunities [4]. Group 3: Competitive Landscape - GLDD faces competition from Orion Group Holdings, Inc. and Limbach Holdings, Inc., but maintains a strong market presence in coastal resilience, port deepening, and LNG-related dredging [6]. - Orion Group offers similar marine construction services but GLDD's newer hopper fleet provides operational advantages in specific coastal restoration projects [7]. - Limbach Holdings operates in a different market segment, resulting in limited direct competition with GLDD [8]. Group 4: Stock Performance and Valuation - GLDD shares have increased by 13.5% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index [9][10]. - The stock is currently trading at a forward P/E ratio of 12.41, indicating a discount compared to industry peers, which may be attractive for investors [12]. - Earnings estimates for 2025 have slightly decreased to $1.09, while estimates for 2026 have increased, reflecting a 29.8% year-over-year growth for 2025 [13][14].

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors to consider on December 19 Company Summaries The Allstate Corporation (ALL) - The company has a Zacks Rank of 1 - The Zacks Consensus Estimate for current year earnings has increased by 22.7% over the last 60 days - Allstate's PEG ratio is 0.39, significantly lower than the industry average of 1.73 - The company possesses a Growth Score of B [1] Great Lakes Dredge & Dock Corporation (GLDD) - The company also carries a Zacks Rank of 1 - The Zacks Consensus Estimate for current year earnings has increased by 6.9% over the last 60 days - Great Lakes Dredge & Dock has a PEG ratio of 1.01, compared to the industry average of 2.99 - The company possesses a Growth Score of A [2] Alarm.com Holdings, Inc. (ALRM) - This company holds a Zacks Rank of 1 - The Zacks Consensus Estimate for current year earnings has increased by 5.5% over the last 60 days - Alarm.com has a PEG ratio of 1.65, lower than the industry average of 2.85 - The company possesses a Growth Score of B [3]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) has seen a stock performance increase of 12.3% over the past month, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector, and the S&P 500 Index [2][9] - The company is benefiting from solid backlog growth driven by large-scale projects, disciplined bidding, and efficient project execution, positioning it well for long-term growth despite macroeconomic challenges [3][23] Backlog and Project Opportunities - GLDD's operations focus on complex port deepening, LNG-related dredging, and coastal resilience projects, supported by increased public infrastructure spending in the US [6] - The maintenance backlog grew year-over-year by 53.9% to $147.6 million, reflecting the company's disciplined bidding approach [6][9] Fleet Modernization - The company has been investing in a multi-year fleet modernization strategy, welcoming its sixth hopper dredge, Amelia Island, in Q3 2025, enhancing its operational capabilities [10] - The construction of the Acadia, a US-flagged subsea rock installation vessel, is expected to expand GLDD's market into offshore energy and subsea infrastructure protection, with the vessel fully booked for 2026 [11] Margin Improvement - GLDD's adjusted EBITDA margin expanded by 310 basis points year-over-year to 20.2% during the first nine months of 2025, driven by effective project execution and a favorable project mix [12][13] - The gross margin also increased by 380 basis points year-over-year to 23.7%, indicating structural improvements in profitability [13] Competitive Position - GLDD occupies a specialized competitive position with strong demand for coastal resilience and offshore energy services, facing competition primarily from Orion Group Holdings, EMCOR Group, and Limbach Holdings [19][20] - GLDD's modern fleet and project execution capabilities provide it with an operational advantage over competitors in certain project types [20][22] Investment Outlook - GLDD's favorable public infrastructure backdrop, disciplined execution, and high-quality backlog provide strong revenue visibility and support high fleet utilization [23] - The stock is currently trading at a discounted forward P/E ratio of 12.18, making it an attractive investment option despite some uncertainty in earnings estimates [14][24]

Group 1: Great Lakes Dredge & Dock (GLDD) - Great Lakes Dredge & Dock is the largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and storm-damaged coastline restoration [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a Zacks Consensus Estimate for its current year earnings increase by 8.1% over the last 60 days [1] - Great Lakes Dredge & Dock has a PEG ratio of 1.9, which is lower than the industry average of 3.1, and possesses a Growth Score of A [2] Group 2: Primoris Services (PRIM) - Primoris Services is one of the largest specialty contractors and infrastructure companies in the United States [2] - The company also carries a Zacks Rank of 1 and has experienced a Zacks Consensus Estimate for its current year earnings increase of 9.1% over the last 60 days [2] - Primoris Services has a PEG ratio of 1.11 compared to the industry average of 3.35, and it holds a Growth Score of A [3] Group 3: Commercial Metals (CMC) - Commercial Metals manufactures, recycles, and markets steel and metal products, along with related materials and services [3] - The company has a Zacks Rank of 1 and has seen a significant increase in the Zacks Consensus Estimate for its current year earnings by 24.4% over the last 60 days [3] - Commercial Metals has a PEG ratio of 0.44, which is considerably lower than the industry average of 1.31, and it possesses a Growth Score of B [4]