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]

Key Takeaways GLDD stock rose 12.3% in the past month, beating its heavy construction industry, sector and the S&P 500.Great Lakes Dredge & Dock's maintenance backlog up 53.9% YoY, aided by disciplined bidding and utilization.Adjusted EBITDA margin up 310 bps to 20.2% YTD, as the modernized fleet and execution lifted profitability.Great Lakes Dredge & Dock Corporation’s (GLDD) stock performance has moved up 12.3% in the past month, outperforming the Zacks Building Products - Heavy Construction industry, the ...

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]

Shares of Great Lakes Dredge & Dock (GLDD) have been strong performers lately, with the stock up 3.7% over the past month. The stock hit a new 52-week high of $13.1 in the previous session. Great Lakes Dredge & Dock has gained 15.6% since the start of the year compared to the 5.5% move for the Zacks Construction sector and the 44.4% return for the Zacks Building Products - Heavy Construction industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it ...

Core Insights - Three stocks with strong growth characteristics and buy ranks are highlighted for investors to consider on December 3 Group 1: Micron Technology, Inc. (MU) - Micron Technology is a semiconductor company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7% over the last 60 days [1] - The company has a PEG ratio of 0.49, significantly lower than the industry average of 1.41 [1] - Micron Technology possesses a Growth Score of A [1] Group 2: Great Lakes Dredge & Dock Corporation (GLDD) - Great Lakes Dredge & Dock Corporation is a dredging services provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.8% over the last 60 days [2] - The company has a PEG ratio of 0.97, compared to the industry average of 2.91 [2] - Great Lakes Dredge & Dock Corporation possesses a Growth Score of A [2] Group 3: Universal Health Services, Inc. (UHS) - Universal Health Services is a healthcare services company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.8% over the last 60 days [3] - The company has a PEG ratio of 0.81, which is lower than the industry average of 0.96 [3] - Universal Health Services possesses a Growth Score of B [3]

Core Insights - Investors prioritize businesses that consistently generate profits, with net profit margin being a crucial metric for assessing profitability and operational effectiveness [1][2] Summary by Sections Net Profit Margin - Net profit margin is calculated as Net Profit divided by Sales multiplied by 100, indicating a company's efficiency in converting sales into actual profits [2] - A higher net profit margin reflects better operational strength and cost management, which is essential for rewarding stakeholders and attracting talent [2] Pros and Cons of Net Profit Margin - Net profit margin provides clarity on a company's business model, including pricing policy and cost structure, making it a preferred metric for investors [3] - Limitations include significant variations across industries and complications arising from different accounting treatments, particularly for non-cash expenses [3][4] Winning Strategy - A healthy net profit margin and solid earnings per share (EPS) growth are key elements sought in a business model [5] Screening Parameters - Criteria for screening include a net margin of at least 0%, positive percentage change in EPS, and high broker ratings indicating bullish sentiment [6][7] Company Highlights - Great Lakes Dredge & Dock Corporation (GLDD) is the largest provider of dredging services in the U.S., with a Zacks Rank of 1 and a VGM Score of A [9] - Natural Gas Services Group, Inc. (NGS) manufactures natural gas compressors, also holding a Zacks Rank of 1 and a VGM Score of A [10] - Strattec Security Corporation (STRT) designs and manufactures locks for automotive manufacturers, with a significant upward revision in earnings estimates [11] - Northrim BanCorp, Inc. (NRIM) is a full-service commercial bank, currently holding a Zacks Rank of 1 and a VGM Score of A [12] Earnings Estimates - GLDD's 2025 earnings estimate has increased by $0.08 to $1.10 per share, with an average surprise of 65.5% over the last four quarters [10] - NGS's 2025 earnings estimate has risen by $0.14 to $1.62 per share, with an average surprise of 28.9% [11] - STRT's fiscal 2026 earnings estimate has moved up by 23.3% to $5.24 per share, with an average surprise of 83.1% [12] - NRIM's 2025 earnings estimate has been revised upward by $0.15 to $2.50 per share, with an average surprise of approximately 19% [13]

Core Insights - Investors primarily utilize price-to-earnings (P/E) and price-to-sales (P/S) ratios for stock evaluation, while the price-to-book (P/B) ratio serves as an additional metric for identifying undervalued stocks with growth potential [1][5][10] Group 1: P/B Ratio and Its Importance - The P/B ratio is defined as the ratio of stock price to book value, calculated as market capitalization divided by book value of equity [2] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued and a good buy [5] - Conversely, a P/B ratio greater than one suggests the stock may be overvalued [5][6] Group 2: Book Value Definition - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [3] - It is calculated by subtracting total liabilities from total assets, equating to common stockholders' equity on the balance sheet [4] Group 3: Limitations of P/B Ratio - The P/B ratio is particularly useful for industries with tangible assets, such as finance and manufacturing, but may be misleading for companies with high R&D expenses or significant debt [8] - A low P/B ratio could indicate weak asset returns or overstated assets, while a high P/B may suggest a company is a takeover target [7] Group 4: Stocks with Low P/B Ratios - StoneCo (STNE) has a low P/B ratio with a projected 3-5 year EPS growth rate of 30.3% and a Zacks Rank of 2 [9][15] - Great Lakes Dredge & Dock (GLDD) also features a low P/B ratio with a projected EPS growth rate of 12.0% and a Zacks Rank of 1 [9][16] - Keros Therapeutics (KROS) is highlighted with a projected EPS growth rate of 23.6% and a Zacks Rank of 1 [9][20] Group 5: Screening Parameters for Investment - Screening for stocks involves comparing P/B, P/S, and P/E ratios against industry medians to identify attractive investment opportunities [11][12][13] - A PEG ratio of less than 1 indicates undervaluation relative to future growth prospects [13] - Stocks should have a minimum trading price of $5 and a substantial average trading volume for liquidity [14]

Market Overview - Major U.S. indices rose before Thanksgiving, with the Dow Jones Industrial Average gaining 314.67 points to close at 47,427.12, the S&P 500 increasing by 46.73 points to settle at 6,812.61, and the Nasdaq Composite outperforming with a gain of 0.82% to finish at 23,214.69 [1] Federal Reserve Policy Impact - Market momentum was driven by shifting expectations regarding Federal Reserve policy, with growing confidence that interest rate cuts may occur as soon as next month, fostering optimism [2] - Easing concerns about an overvalued artificial intelligence sector contributed to improved market sentiment [2] Value Stocks Opportunity - Value stocks are seen as appealing due to the potential benefits of lower borrowing costs for companies with stable earnings and discounted valuations [2] - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for evaluating value stocks, indicating better value when lower [3][4] Financial Health Indicators - P/CF stands out because it reflects a company's financial health by adding back non-cash charges to net income, making it a more reliable measure than earnings, which can be subject to manipulation [4][5] - Positive cash flow indicates increased liquid assets, allowing companies to manage debt, expenses, and reinvestment, while negative cash flow suggests declining liquidity [6] Value Investing Strategy - A comprehensive investment strategy should include multiple metrics such as price-to-book, price-to-earnings, and price-to-sales ratios, along with a favorable Zacks Rank and Value Score to avoid value traps [7] - Parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and an average 20-day trading volume greater than 100,000 [8] Highlighted Value Stocks - Four value stocks with low P/CF ratios were identified: Great Lakes Dredge & Dock Corporation (GLDD), StoneCo Ltd. (STNE), PG&E Corporation (PCG), and EnerSys (ENS), all showing year-over-year sales and EPS growth projections [9] - Each of these stocks holds a Value Score of A or B and ranks in the top two Zacks Ranks, indicating strong potential [9] Company-Specific Insights - Great Lakes Dredge & Dock (GLDD) has a trailing four-quarter earnings surprise of 65.5% and is projected to see sales and EPS growth of 11.6% and 31%, respectively [12][13] - StoneCo (STNE) has a trailing earnings surprise of 9.1% and is expected to grow sales and EPS by 12.7% and 27.4%, respectively, with shares having rallied 68% in the past year [13][14] - PG&E Corporation (PCG) has a trailing earnings surprise of 0.5% and is projected for sales and EPS growth of 6.7% and 10.3%, respectively, although shares have declined 26% in the past year [14][15] - EnerSys (ENS) has a trailing earnings surprise of 4.9% and is expected to see sales and EPS growth of 4% and 1.3%, respectively, with shares surging 47.8% in the past year [15][16]

Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, with a history of significant international projects [3] - The company is expanding its core business into the offshore energy industry [3] - Great Lakes operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - The company has a disciplined training program for engineers to ensure experienced-based performance [3] - Great Lakes has an Incident-and Injury-Free® (IIF®) safety management program integrated into its culture, emphasizing employee safety [3] Upcoming Event - Scott Kornblau, Senior Vice President and Chief Financial Officer, will present at NobleCon21 on December 3 at 12:00 PM Eastern Standard Time [1] - A high-definition video webcast of the presentation will be available the following day on the company's website and other platforms [2]

Core Insights - Great Lakes Dredge & Dock Corporation has received a credit rating upgrade from S&P Global Ratings, moving from "B-" to "B" with a stable outlook [1][2] Financial Performance - The upgrade is attributed to improved revenues, earnings, and expanding margins, alongside decreasing capital expenditures, which are expected to support healthy free cash flow generation in the coming years [2] - S&P anticipates continued revenue growth and margin expansion through 2026, with increasingly positive free cash flow as the new build program concludes [2] Company Overview - Great Lakes is the largest provider of dredging services in the U.S. and has a long history of significant international projects [3] - The company is expanding its core business into the offshore energy sector and employs experienced civil, ocean, and mechanical engineers [3] - With over 135 years of history, Great Lakes has a perfect track record of completing marine projects and operates the largest and most diverse fleet in the U.S. dredging industry, consisting of approximately 200 specialized vessels [3] - The company has a disciplined training program for engineers and emphasizes a safety management culture through its Incident-and Injury-Free® (IIF®) program [3]