Core Insights - The article emphasizes the importance of cash flow over mere profitability when evaluating a company's financial health and resilience [1][4][5] - It highlights specific stocks that are recommended for investment based on their cash flow performance and overall financial health [2][9] Cash Flow Importance - Cash is described as the lifeblood of any business, providing flexibility for decision-making, investment opportunities, and growth [3] - Positive cash flow indicates an increase in liquid assets, enabling companies to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow suggests declining liquidity [5] Current Economic Context - The article notes that in light of global economic uncertainties and liquidity concerns, analyzing cash-generating efficiency is particularly relevant [4] Screening Parameters for Stocks - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average cash flow per share, indicating a positive trend [7] - Additional criteria included a Zacks Rank of 1 (Strong Buy), an average broker rating of 1, a current price of at least $5, and a VGM Score of B or better [8] Recommended Stocks - Sumitomo Corporation (SSUMY), IHI Corporation (IHICY), Nomad Foods Limited (NOMD), Great Lakes Dredge & Dock Corporation (GLDD), and Natural Gas Services Group, Inc. (NGS) are highlighted as stocks with rising cash flow above their five-year average [2][9] - Each of these companies has seen upward revisions in EPS estimates, reflecting improving outlooks and strong financial health [9] Company Profiles - **Sumitomo Corporation (SSUMY)**: Engaged in diverse business activities globally, with a 6% improvement in the Zacks Consensus Estimate for fiscal 2026 earnings per share [10][11] - **IHI Corporation (IHICY)**: Focuses on heavy machinery, with a 28.6% increase in the Zacks Consensus Estimate for fiscal 2026 earnings per share [11] - **Nomad Foods (NOMD)**: Specializes in frozen foods, with a 4% upward revision in current-year earnings estimate to $2.07 per share, indicating a 7.3% year-over-year increase [12] - **Great Lakes Dredge & Dock (GLDD)**: The largest provider of dredging services in the U.S., with a 39.1% upward revision in the 2025 earnings estimate to 96 cents per share [13] - **Natural Gas Services Group (NGS)**: Manufactures natural gas compressors, with an 18.6% improvement in the 2025 earnings estimate [14]

Core Insights - Great Lakes Dredge & Dock (GLDD) and Dycom Industries (DY) are both considered for investors interested in undervalued stocks within the Building Products - Heavy Construction sector [1] - Both companies currently hold a Zacks Rank of 1 (Strong Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3] Valuation Metrics - GLDD has a forward P/E ratio of 12.11, while DY has a forward P/E of 24.26, suggesting GLDD is more attractively priced [5] - GLDD's PEG ratio is 1.01, compared to DY's PEG ratio of 1.32, indicating GLDD's expected earnings growth is more favorable relative to its valuation [5] - GLDD's P/B ratio is 1.63, significantly lower than DY's P/B of 5.3, further supporting GLDD as the superior value option [6] - Based on these valuation metrics, GLDD holds a Value grade of A, while DY has a Value grade of C, reinforcing the conclusion that GLDD is the better value investment at this time [6]

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $11.58, reflecting a -1.53% change from the previous day, underperforming the S&P 500's daily loss of 0.84% [1] - Over the past month, GLDD shares have appreciated by 5%, outperforming the Construction sector's loss of 0% and the S&P 500's gain of 1.44% [1] Upcoming Earnings - The company is expected to report an EPS of $0.08, which is a decrease of 27.27% from the prior-year quarter [2] - The consensus estimate for revenue is $174.33 million, indicating a 2.49% growth compared to the same quarter last year [2] Full Year Estimates - For the full year, analysts expect earnings of $0.96 per share and revenue of $816.02 million, representing changes of +14.29% and +6.99% respectively from last year [3] Analyst Estimates - Recent changes to analyst estimates for GLDD are important as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [4] Zacks Rank - GLDD currently holds a Zacks Rank of 1 (Strong Buy), which has historically yielded an average annual return of +25% since 1988 [6] Valuation Metrics - GLDD is trading at a Forward P/E ratio of 12.29, which is a discount compared to the industry average Forward P/E of 20.6 [7] - The company has a PEG ratio of 1.02, compared to the industry average PEG ratio of 1.38 [7] Industry Overview - The Building Products - Heavy Construction industry, part of the Construction sector, ranks in the top 2% of all industries according to the Zacks Industry Rank [8]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" to maximize returns in a shorter time frame [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach may involve investing in bargain stocks that have recently shown price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Great Lakes Dredge & Dock (GLDD) Analysis - GLDD has shown a four-week price change of 2.4%, indicating growing investor interest and positioning it well within the momentum investing framework [4] - Over the past 12 weeks, GLDD's stock has gained 25.9%, with a beta of 1.29, suggesting it moves 29% more than the market in either direction [5] - GLDD has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] Group 3: Earnings Estimates and Valuation - GLDD has received a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.97, suggesting it is undervalued as investors pay only 97 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is experiencing margin expansion, indicating its competitive strength in securing large-scale capital and coastal protection projects alongside mainstream dredging services [1] - The company's adjusted EBITDA margin increased by 230 basis points to 24.7%, and gross margin rose by 570 basis points to 28.6% in Q1 2025, driven by a new build program and robust public infrastructure spending [1][8] - GLDD's stock has risen 31.8% over the past three months, outperforming the broader construction sector and S&P 500 index [7][8] Company Developments - The new build program initiated in 2020 aims to modernize GLDD's fleet for coastal restoration and shoreline protection projects, expected to conclude by the end of 2025 or early 2026 [2] - The construction of Acadia, the first U.S.-flagged Jones Act-compliant subsea rock installation vessel, is part of this modernization effort [2] - GLDD is optimistic about the new hopper dredge, Amelia Island, designed for efficient operation in shallow and narrow waters along U.S. coastlines [2] Market Environment - Increased government funding for infrastructure projects at both state and federal levels is contributing to GLDD's top-line growth and margin expansion, reducing payment failure risks and enhancing revenue visibility [3] - Other heavy construction firms, such as Orion Group Holdings, Inc. and Granite Construction Incorporated, are also experiencing margin expansion due to favorable public infrastructure spending [4] Financial Performance - Orion Group reported an adjusted EBITDA margin of 4.3%, up 180 basis points year over year, supported by government initiatives like the Infrastructure Investment and Jobs Act [5] - Granite Construction's adjusted EBITDA margin expanded by 190 basis points to 4%, benefiting from improved project execution and higher volumes [6] - GLDD's current valuation is attractive, trading at a forward P/E ratio of 12.01X, indicating a potential entry point for investors [10] Earnings Estimates - GLDD's earnings estimates for 2025 and 2026 have increased by 39.1% to $0.96 per share and 11.8% to $0.95 per share, respectively, with 2025 showing a 14.3% year-over-year growth [12]

Group 1: LATAM Airlines Group S.A. (LTM) - LATAM Airlines Group S.A. is a passenger and cargo air transportation services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for LATAM's current year earnings has increased by 22.3% over the last 60 days [1] - LATAM has a PEG ratio of 0.62, which is lower than the industry average of 0.64, and possesses a Growth Score of A [1] Group 2: Unisys Corporation (UIS) - Unisys Corporation is an information technology solutions company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Unisys's current year earnings has increased by 132% over the last 60 days [2] - Unisys has a PEG ratio of 0.51, significantly lower than the industry average of 2.84, and possesses a Growth Score of B [2] Group 3: Great Lakes Dredge & Dock Corporation (GLDD) - Great Lakes Dredge & Dock Corporation is a dredging services company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Great Lakes Dredge & Dock's current year earnings has increased by 39.1% over the last 60 days [3] - Great Lakes Dredge & Dock has a PEG ratio of 1.00, compared to the industry average of 6.87, and possesses a Growth Score of A [3]

Valuation and Market Position - Great Lakes Dredge & Dock Corporation (GLDD) is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.43X, which is below its industry peers such as Orion Group Holdings, Inc. (31.69X), Quanta Services, Inc. (32.73X), and Granite Construction Incorporated (13.98X) [2][7] - The discounted valuation of GLDD stock presents an attractive entry point for investors, with potential for long-term valuation growth due to strong market fundamentals supporting revenue visibility and profitability [3] Business Operations and Competitive Advantage - GLDD is benefiting from large-scale capital and coastal protection projects, which account for 95% of its $1 billion dredging backlog as of March 31, 2025, up from $879.4 million year-over-year [10][11] - The company has a competitive edge over peers by focusing on coastal restoration projects rather than mainstream maintenance dredging, supported by increased government funding for infrastructure projects [11] New Build Program - The new build program initiated in 2020 aims to modernize GLDD's fleet, including the construction of the Acadia vessel, expected to be delivered by Q1 2026, which will support offshore wind projects and subsea infrastructure protection [12][13] - Additional vessels, such as the Amelia Island and Galveston Island, are designed for efficient operation in shallow waters, enhancing GLDD's capabilities in coastal protection projects [13] Financial Health and Liquidity - As of March 31, 2025, GLDD reported cash and cash equivalents of $11.3 million, with net cash from operating activities increasing to $60.9 million, reflecting higher earnings and increased billings [16] - The company maintains a stable liquidity position with over $300 million available and no debt maturities until 2029, allowing for strategic investments in an uncertain market [16] Earnings Estimates and Market Sentiment - GLDD's earnings estimates for 2025 and 2026 have increased by 39.1% to 96 cents per share and 11.8% to 95 cents, respectively, indicating positive analyst sentiment [17] - Technical indicators show GLDD stock trading above both the 50-day and 200-day simple moving averages, suggesting a bullish trend and positive market confidence in the company's financial health [18] Analyst Recommendations - Analysts express strong optimism for GLDD, with all three recommendations indicating a "Strong Buy" status, reinforcing the stock's potential as a solid portfolio addition [22][24]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) has a competitive edge in large-scale capital and coastal protection projects, with a dredging backlog of $1 billion as of March 31, 2025, up from $879.4 million year-over-year, with 95% of this backlog related to capital and coastal protection projects [1][8] - The company benefits from strong demand for government-funded coastal restoration projects, enhancing revenue visibility and margin growth due to reduced payment failure risks and efficient asset utilization [2] - GLDD's new build program, with over $500 million invested, is crucial for modernizing its fleet for large-scale projects, and the company plans to spend between $140 million and $160 million in 2025 on this program and maintenance [3] Industry Trends - Other heavy construction firms like Orion Group Holdings, Inc. and Quanta Services, Inc. are also experiencing backlog growth due to strong public funding for infrastructure projects [4] - Orion Group's backlog increased by 11% year-over-year to $839.7 million, with 72.3% from the Marine segment, reflecting optimism in end markets [5] - Quanta Services reported a total backlog of $35.25 billion, with a 12-month backlog of $19.42 billion, marking year-over-year increases of 17.9% and 16.7%, respectively [6] Financial Performance - GLDD's stock price surged 52.8% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry and the broader S&P 500 index [7][8] - The company's gross margin expanded by 570 basis points year-over-year to 28.6% in Q1 2025, driven by large-scale, government-funded coastal projects [8] - Earnings estimates for GLDD have increased by 34.8% for 2025 to $0.93 per share and by 11.8% for 2026 to $0.95 per share, indicating year-over-year growth of 10.7% and 2.7%, respectively [11]

Group 1: Strattec Security (STRT) - Strattec Security designs, develops, manufactures, and markets mechanical and electro-mechanical locks for automotive manufacturers in the US, Canada, and Mexico [1] - The company has a Zacks Rank of 1 (Strong Buy) and a Growth Score of A [2] - The Zacks Consensus Estimate for its current year earnings has increased by 19.9% 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, focusing on maintaining and deepening shipping channels, land reclamation, and coastline renourishment [2] - The company also holds a Zacks Rank of 1 and a Growth Score of A [3] - The Zacks Consensus Estimate for its current year earnings has risen by 34.8% over the last 60 days [2] Group 3: The ODP Corporation (ODP) - The ODP Corporation provides business services, products, and digital workplace technology solutions to various business sizes [3] - It carries a Zacks Rank of 1 and has a Growth Score of B [4] - The Zacks Consensus Estimate for its current year earnings has increased by 18.4% over the last 60 days [3]

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) is highlighted as a strong investment opportunity due to its leading position in the dredging services industry and significant earnings growth forecast [1]. Group 1: Company Overview - 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 damage restoration [1]. - The company has a Zacks Rank of 1 (Strong Buy), indicating strong investor interest and confidence [1]. Group 2: Financial Metrics - The Zacks Consensus Estimate for Great Lakes Dredge & Dock's current year earnings has increased by 34.8% over the last 60 days, reflecting positive market sentiment and growth potential [1]. - The company has a price-to-earnings (P/E) ratio of 12.20, which is significantly lower than the industry average of 24.0, suggesting it may be undervalued [2]. - Great Lakes Dredge & Dock possesses a Value Score of A, indicating strong value characteristics for investors [2].