Core Viewpoint - Great Lakes Dredge & Dock Corporation has launched the Acadia, the first U.S. flagged, Jones Act-compliant subsea rock installation vessel, marking a significant milestone in its Offshore Energy strategy [1][5]. Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States, with a history of completing significant international projects and a focus on expanding into the offshore energy industry [6]. - The company operates approximately 200 specialized vessels, making it the owner of the largest and most diverse fleet in the U.S. dredging industry [6]. Vessel Specifications and Impact - The Acadia is designed to transport and install up to 20,000 metric tons of rock on the seabed, providing essential scour protection for subsea infrastructure [3]. - The construction of the Acadia utilized steel sourced from Ohio and labor from multiple states, creating over one million manhours of high-paying jobs [4]. Future Operations - Upon delivery, the Acadia will begin operations for the Empire Wind I offshore wind farm and will continue contracted work along the U.S. East Coast through the end of 2026 [5]. - The company has been actively engaging with clients for new offshore energy projects for 2027 and beyond [5].

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $11.84, reflecting a -1.82% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.79% [1] - Over the last month, GLDD shares increased by 2.9%, lagging behind the Construction sector's gain of 5.56% and the S&P 500's gain of 5.22% [1] Financial Projections - The upcoming EPS for Great Lakes Dredge & Dock is projected at $0.08, indicating a 27.27% decline compared to the same quarter last year [2] - The consensus estimate for revenue is $174.33 million, which represents a 2.49% increase from the equivalent quarter last year [2] - For the full year, earnings are projected at $0.96 per share and revenue at $816.02 million, showing changes of +14.29% and +6.99% respectively from the previous year [3] Analyst Revisions and Rankings - Recent revisions to analyst forecasts for Great Lakes Dredge & Dock are important as they reflect changing business trends, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which evaluates estimated changes, currently ranks Great Lakes Dredge & Dock as 1 (Strong Buy), with 1 stocks historically returning an average annual gain of +25% since 1988 [5] Valuation Metrics - Great Lakes Dredge & Dock has a Forward P/E ratio of 12.61, which is a discount compared to the industry average of 23.2 [6] - The company has a PEG ratio of 1.05, while the average PEG ratio for the Building Products - Heavy Construction industry is 1.46 [6] Industry Context - The Building Products - Heavy Construction industry, part of the Construction sector, holds a Zacks Industry Rank of 2, placing it in the top 1% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals and positive price momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to maintain their recent uptrend, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Great Lakes Dredge & Dock (GLDD) is highlighted as a strong candidate for trend investing, having increased by 35.8% over the past 12 weeks, reflecting investor confidence [4]. - GLDD has also shown a price increase of 2.9% over the last four weeks, indicating that the upward trend is still intact [5]. Group 2: Fundamental Strength Indicators - GLDD is currently trading at 84.6% of its 52-week high-low range, suggesting it may be on the verge of a breakout [6]. - The stock holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6][7]. - The Average Broker Recommendation for GLDD is also 1 (Strong Buy), indicating strong optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Additional Insights - The article suggests that the price trend for GLDD is unlikely to reverse soon, and encourages consideration of other stocks that meet the criteria of the "Recent Price Strength" screen [8]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can assist in identifying potential winning stocks [8].

Core Insights - Great Lakes Dredge & Dock (GLDD) and Dycom Industries (DY) are both strong candidates for value investors in the Building Products - Heavy Construction sector [1] - Both companies currently hold a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - GLDD has a forward P/E ratio of 12.61, while DY has a forward P/E of 26.19, suggesting GLDD may be undervalued compared to DY [5] - The PEG ratio for GLDD is 1.05, indicating a more favorable valuation relative to its expected earnings growth compared to DY's PEG ratio of 1.43 [5] - GLDD's P/B ratio is 1.69, significantly lower than DY's P/B of 5.72, further supporting GLDD's position as a more attractive value option [6] Value Grades - GLDD has received a Value grade of A, while DY has a Value grade of D, highlighting GLDD's superior valuation metrics [6]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is facing delays in offshore projects, particularly in the U.S. offshore wind market, due to regulatory, financial, and logistical challenges [1][2] - The company is strategically expanding its offshore wind business internationally, targeting markets in the UK, European Union, and Asia [2][3] - GLDD is diversifying its portfolio by focusing on rock protection projects for critical subsea infrastructure, which helps mitigate risks associated with project delays [3] Financial Performance - GLDD's stock has increased by 48.2% over the past three months, outperforming the broader Zacks Construction sector and the S&P 500 index, but underperforming the Zacks Building Products - Heavy Construction industry [4] - The company's 2025 EPS estimate has risen by 39.1% to $0.96, despite ongoing project delays [7][10] - GLDD's current forward P/E ratio is 12.52X, which is lower than competitors Granite Construction and Jacobs Solutions, suggesting a discounted entry point for investors [8][9] Market Position - Competitors such as Granite Construction and Jacobs Solutions have seen their shares rise by 29.9% and 18.4%, respectively, in the past three months, benefiting from strong public infrastructure trends [5] - GLDD's earnings estimates for 2025 and 2026 have increased by 39.1% and 14.5%, respectively, indicating positive growth prospects [10]

Core Viewpoint - Great Lakes Dredge & Dock Corporation has received four significant work awards, enhancing its role in the U.S. energy infrastructure and contributing to its revenue visibility for 2025 and beyond [5][7]. Group 1: Work Awards - The company has been awarded a dredging contract for the Woodside Louisiana LNG project, which includes the construction of a ship berthing basin for LNG carriers, with operations expected to start in early 2026 [1]. - The Galveston Entrance Channel and Houston Ship Channel maintenance project involves dredging to maintain operating depths, with work expected to commence in the third quarter of 2025 and complete by the fourth quarter of 2025 [2]. - The Mississippi River Hopper Dredge Contract No. 3 involves rental of a dredge for maintenance dredging on the Mississippi River, with work having started in May 2025 [3]. - The Charleston Entrance Channel project, awarded in the first quarter of 2025, has been completed in the second quarter of 2025 [4]. Group 2: Financial Aspects - The awarded projects include financial figures: Galveston Entrance Channel and Houston Ship Channel project is valued at $36.2 million, Mississippi River Hopper Dredge Contract No. 3 at $17.6 million, and Charleston Entrance Channel at $10.8 million [7]. Group 3: Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S., with a history of completing significant international projects and a diverse fleet of approximately 200 specialized vessels [6]. - The company is expanding its core business into the offshore energy industry and employs experienced engineering staff for project management [6].

Company Performance - Great Lakes Dredge & Dock (GLDD) closed at $12.35, with a gain of +1.65% on the most recent trading day, outperforming the S&P 500's gain of 1.11% [1] - Prior to this trading day, GLDD shares had increased by 11.16%, significantly surpassing the Construction sector's gain of 2.35% and the S&P 500's gain of 3.92% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with an expected EPS of $0.08, reflecting a 27.27% decline compared to the same quarter last year [2] - Revenue is projected to be $174.33 million, indicating a 2.49% increase compared to the year-ago quarter [2] Full-Year Estimates - Zacks Consensus Estimates forecast earnings of $0.96 per share and revenue of $816.02 million for the full year, representing year-over-year changes of +14.29% and +6.99%, respectively [3] - Recent analyst estimate revisions suggest a positive outlook for the business [3] Valuation Metrics - GLDD is currently trading at a Forward P/E ratio of 12.7, which is lower than the industry's Forward P/E of 20.97, indicating a valuation discount [6] - The company has a PEG ratio of 1.06, compared to the industry average PEG ratio of 1.34 [7] Industry Context - The Building Products - Heavy Construction industry, which includes GLDD, has a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8] Investment Rating - GLDD currently holds a Zacks Rank of 1 (Strong Buy), with a historical average annual return of +25% for 1 stocks since 1988 [5]

Financial Performance - Great Lakes Dredge & Dock Corporation (GLDD) reported Q1 2025 revenue of $243 million[14], a $44.2 million increase compared to Q1 2024[80] - Adjusted EBITDA from continuing operations was $60.1 million for Q1 2025[78], a $17.2 million increase from Q1 2024[78] - The company's dredging backlog ended Q1 2025 at $1 billion[14], with 95% from capital and coastal protection projects[15] - The company has liquidity of over $300 million and announced a $50 million stock repurchase program in March 2025[87] Market and Operations - The company's dredging bid market share represents 27% of a $2375 million market average over the prior three years (2022-2024)[24, 32] - The U S Army Corps of Engineers' budget for 2024 was approved for $8.7 billion, leading to a $2.9 billion U S dredging bid market[33] - The company received notice to proceed in Q2 2025 for dredging work on the Woodside Louisiana LNG project[15] - The company is expanding its core business into the offshore energy industry[22] Fleet and Sustainability - The company is committed to fleet improvement, including new hopper dredges and support equipment[46] - The company is building the first Jones Act compliant, subsea rock installation vessel - Acadia, expected delivery in 2026[46] - The company achieved zero recordable incidents in Q1 2025[64]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) is experiencing strong demand for dredging services in the Liquefied Natural Gas (LNG) market, particularly from private companies in the U.S. This demand surge is driven by increased U.S. LNG exports due to global political conflicts, necessitating the expansion of existing facilities and the construction of new ones [1][2] Group 1: Market Position and Demand - GLDD is well-positioned to capitalize on favorable market trends due to its capability to manage large-scale projects and provide diversified services such as channel deepening and berth dredging, giving it a competitive advantage over peers [2] - The company is optimistic about the Woodside Louisiana LNG project, with dredging services expected to commence in early 2026, contributing to its backlog for Q2 2025 [3] Group 2: Financial Performance - In Q1 2025, GLDD reported a 22.2% year-over-year revenue growth, with a dredging backlog of $1 billion, an increase from $879.4 million the previous year [4][7] - Analysts project revenue growth of 7% in 2025 and 4.6% in 2026, reflecting positive market fundamentals [4] Group 3: Stock Performance and Valuation - GLDD's stock has increased by 27.1% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry and the S&P 500 index [5] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.26X, which is lower than peers like Orion Group and EMCOR, suggesting an attractive entry point for investors [9][10] Group 4: Earnings Estimates - Earnings estimates for GLDD have risen by 39.1% for 2025 and 11.8% for 2026, indicating strong analyst optimism [11] - The estimated earnings per share (EPS) for 2025 is 96 cents, reflecting a 14.3% year-over-year growth, while the 2026 estimate is 95 cents, indicating a slight decline of 0.4% [11][12]

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]