Momentum investing is essentially an exception to the idea of "buying low and selling high." Investors following this style of investing are usually not interested in betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead ...

Financial Performance - Total revenue for Q2 2024 reached $1,082,486,000, a 20.4% increase from $898,552,000 in Q2 2023[81] - Gross profit for Q2 2024 was $164,711,000, compared to $103,086,000 in Q2 2023, reflecting a significant improvement[81] - Total revenue for the three months ended June 30, 2024, was $5,576,219, a 1.4% increase from $5,499,129 in the previous quarter[87] - Public sector revenue accounted for 77.9% of total revenue, while private sector revenue made up 22.1% as of June 30, 2024[87] - Gross profit for the three months ended June 30, 2024, was $164,711, representing 15.2% of total revenue, up from 11.5% in the same period of 2023[89] - Construction segment gross profit increased by $56.2 million, or 71.0%, compared to the same period in 2023, primarily due to higher revenue[89] Revenue Sources - Construction revenue for Q2 2024 increased by $168.5 million, or 22.5%, driven by operations in California, Nevada, and Alaska[84] - Materials revenue for Q2 2024 rose by $15.4 million, or 10.3%, primarily due to revenue increases from newly acquired businesses[85] - Public work projects account for approximately 80% of the company's portfolio, heavily influenced by federal, state, and local funding levels[76] Acquisitions and Projects - The company completed two acquisitions in 2023, including Coast Mountain Resources and Lehman-Roberts Company, which are now contributing to revenue[79] - The company plans to acquire Dickerson & Bowen, Inc., expected to close in Q3 2024, which will enhance its aggregates and asphalt capabilities[80] - Committed and Awarded Projects (CAP) balance stood at $5.6 billion at the end of Q2 2024, supported by a positive public funding environment[78] - The Infrastructure Investment and Jobs Act (IIJA) has provided $550 billion in incremental funding over five years, enhancing project visibility for state and local governments[76] Cost Management - The company has implemented proactive measures to mitigate the impacts of inflation and supply chain constraints on its operations[78] - Total selling, general, and administrative expenses for the three months ended June 30, 2024, were $70,052, which is 6.5% of revenue, down from 7.2% in the previous year[91] - Other costs, net for the three months ended June 30, 2024, decreased by $3.4 million compared to the prior year, primarily due to a non-recurring litigation charge[94] - Total other expense, net decreased by $17.4 million for the three months ended June 30, 2024, mainly due to lower debt extinguishment costs[95] Tax and Compliance - The provision for income taxes for the three months ended June 30, 2024, was $20,693, with an effective tax rate of 34.7%[96] - The company maintained compliance with financial covenants in the Credit Agreement as of June 30, 2024[108] Cash Flow and Capital Expenditures - Cash provided by operating activities for the six months ended June 30, 2024, was $22.1 million, representing a $141.0 million increase compared to the same period in 2023[102] - Cash used in investing activities decreased by $14.3 million to $50.1 million for the six months ended June 30, 2024, compared to the same period in 2023[104] - Cash used in financing activities increased by $126.7 million to $22.9 million for the six months ended June 30, 2024, primarily due to a decrease in proceeds from debt issuances[105] - Capital expenditures for the six months ended June 30, 2024, were $66.9 million, a decrease from $79.7 million in the same period of 2023, with anticipated capital expenditures for 2024 projected to be between $130 million and $150 million[101] - Significant additions to capital assets during the three months included $183 million for highway projects in California and $114 million for a bridge project in Michigan[88] Shareholder Returns - The company repurchased 225,000 shares under the $300 million share repurchase program, with $218.2 million remaining available as of June 30, 2024[109] Assets and Liabilities - As of June 30, 2024, total cash, cash equivalents, and marketable securities amounted to $377.2 million, down from $453.5 million as of December 31, 2023[100] - Non-controlling partners' share of capital assets increased to $351.6 million as of June 30, 2024, from $219.4 million in the previous quarter[88] - The amount attributable to non-controlling interests decreased by $8.8 million and $13.1 million for the three and six months ended June 30, 2024, respectively, compared to the prior year, primarily due to decreased losses from a consolidated construction joint venture[97] - As of June 30, 2024, the total unused availability under the Credit Agreement was $333.4 million[99] - The company had $29.2 million of contract retention receivables from Brightline, representing 9.4% of total contract assets as of June 30, 2024[99]

Financial Performance - Q2 2024 total revenue reached $1082 million, a $184 million increase year-over-year[13] - Construction revenue in Q2 2024 was $918 million, up $169 million year-over-year[13] - Materials revenue in Q2 2024 was $165 million, a $15 million increase year-over-year[13] - Adjusted EBITDA margin increased by 290 bps year-over-year to 120%[13, 14] - The company anticipates revenue between $39 billion and $40 billion for FY 2024[16] CAP and Construction Segment - CAP reached $5576 million, a $139 million increase year-over-year[13, 9] - California CAP decreased sequentially by $86 million to $23 billion but increased $2 million year-over-year[9] - Construction revenue increased 22% year-over-year, led by California, Nevada, and Alaska[9] Materials Segment - The company is centralizing materials segment management functions[12] - The company is making strategic investments, including the acquisition of Dickerson and Bowen and a land lease in Southwest Washington[12] - The company saw cash gross profit margin expansion year-over-year in the materials segment[12] Acquisitions and Expansion - The company acquired Dickerson & Bowen, Inc, strengthening its Southeast platform[4, 5] - Memphis Stone and Gravel has rights to an estimated 82 million tons of reserves[1, 56]

This SR33 enhancement project of approximately $27 million, which will be funded by Caltrans, will be included in Granite's second-quarter 2024 Committed and Awarded Projects (CAP). Shares of this civil construction company and aggregate producer gained 21% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry's 18.1% growth. The company's Per the contract, Granite will be responsible for enhancing road safety and driving conditions of this 19-mile stretching SR33 ...

Granite Construction Incorporated (GVA) has secured a $16 million contract from the City of Salinas to upgrade a major traffic route between residential areas and Highway 101. The project will widen East Boronda Road into a four-lane roadway and construct a multi-lane roundabout at the McKinnon Street intersection, significantly improving traffic flow and safety. Granite's local operations will supply essential materials, including 7,500 tons of Hot Mix Asphalt, 8,000 tons of Recycled Aggregate Base from th ...

Granite Construction Incorporated (GVA) received an approximately $25 million contract to remove and replace the Edgewater Creek Bridge. The City of Everett has provided this contract, which includes the removal of the existing bridge and the construction of a new bridge over the Edgewater Creek Basin and is funded by federal grants and local funds. Although the project involves some engineering challenges due to the steep and unstable soils of the ravine, GVA's experts will construct a trestle to facilitat ...

Group 1: Company Performance and Rankings - Tutor Perini Corporation (TPC) currently holds a Zacks Rank 1, indicating strong performance potential [2] - Dycom Industries, Inc. (DY) also has a Zacks Rank 1 and has delivered a trailing four-quarter earnings surprise of 30.2% on average [3] - EMCOR Group, Inc. (EME) boasts a Zacks Rank 1 with a trailing four-quarter earnings surprise of 32% on average [6] - Granite Construction Incorporated (GVA) has received a Zacks Rank 1 (Strong Buy) [9] Group 2: Recent Contracts and Projects - Granite Construction has secured a contract worth approximately $15 million to rehabilitate pavement along State Route 41 (SR41) from the California Department of Transportation [7] - The project includes removing and replacing failed pavement areas at SR41 with 49,400 tons of Hot Mix Asphalt (HMA) and placing a surface course of 19,100 tons of Rubberized HMA (RHMA) [14] - The work is expected to commence in July 2024 and be completed by July 2025 [10] Group 3: Financial Performance and Estimates - GVA's shares have increased by 56% over the past year, while the Zacks Building Products - Heavy Construction industry has grown by 60.2% [11] - Earnings estimates for GVA for 2024 have risen to $4.76 from $4.29 in the past 60 days, indicating a year-over-year growth of 51.6% [11] - The Zacks Consensus Estimate for TPC's 2024 sales and earnings per share (EPS) indicates growth of 18% and 133.3%, respectively, from the previous year [12] - The Zacks Consensus Estimate for DY's fiscal 2025 sales and EPS indicates a rise of 9.3% and 5.6%, respectively, year over year [13] - The Zacks Consensus Estimate for EME's 2024 EPS indicates an improvement of 20.7% from the prior-year levels [17] Group 4: Market Environment and Opportunities - GVA's performance is driven by consistent award wins and a focus on growing a high-quality Committed and Awarded Projects (CAP) portfolio, supported by a positive public funding environment and resilient private market [8] - GVA's CAP increased to $5.5 billion in the first quarter of 2024, up from $5.1 billion as of March 31, 2023, indicating strong market growth [15] - The company expects substantial opportunities to build CAP in the second quarter and the remainder of 2024 [15]

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Granite Construction is currently sporting a Zacks Rank of #1 (Strong Buy). Armstrong World Industries (AWI) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 1 ...

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Granite Construction (GVA) one of those stocks right now? A quick glance at the company's yearto-date performance in comparison to the rest of the Construction sector should help us answer this question. Granite Construction is a member of our Construction group, which includes 94 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the st ...

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Granite Construction (GVA) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price ch ...