Sterling Infrastructure (STRL) closed at $143.26 in the latest trading session, marking a -1.77% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.39%. Shares of the civil construction company have appreciated by 22.56% over the course of the past month, outperforming the Construction sector's gain of 3.87% and the S&P 500's gain of 2.43%. Investors will be eagerly watching ...

Investors looking for stocks in the Engineering - R and D Services sector might want to consider either Sterling Infrastructure (STRL) or Altair Engineering (ALTR) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy ...

Company Performance - Sterling Infrastructure (STRL) closed at $146.14, with a slight increase of +0.14% from the previous trading session, underperforming the S&P 500 which gained 0.4% [1] - Over the past month, STRL shares have appreciated by 25.25%, significantly outperforming the Construction sector's gain of 2.56% and the S&P 500's gain of 1.71% [1] Upcoming Earnings - Sterling Infrastructure is projected to report earnings of $1.68 per share, reflecting a year-over-year growth of 33.33% [2] - The Zacks Consensus Estimate for revenue is $599.9 million, indicating a 7.06% increase from the previous year [2] Full Year Projections - For the full year, earnings are estimated at $5.66 per share, showing a growth of +26.62% from the prior year [3] - Revenue is projected to reach $2.16 billion, representing a +9.69% change from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Sterling Infrastructure indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which reflects these estimate changes, currently ranks Sterling Infrastructure as 1 (Strong Buy) [6] Valuation Metrics - Sterling Infrastructure has a Forward P/E ratio of 25.81, which is higher than the industry's Forward P/E of 21.63 [7] - The company has a PEG ratio of 1.72, compared to the Engineering - R and D Services industry's average PEG ratio of 1.59 [7] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, holds a Zacks Industry Rank of 94, placing it in the top 38% of over 250 industries [8] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Sterling Infrastructure, Inc. (STRL) is experiencing significant market momentum, with its stock trading near a 52-week high and showing strong performance compared to industry benchmarks [1][2]. Group 1: Stock Performance - STRL shares have increased by 24.4% over the past month, outperforming the Zacks Engineering - R and D Services industry, which gained 3.7% [2]. - Over the last three years, Sterling's shares have delivered a total return of 529.9%, significantly higher than the S&P 500's return of 27.6% [2]. Group 2: Market Demand and Backlog - The company is benefiting from strong demand in key segments, particularly in Transportation and E-Infrastructure, driven by federal infrastructure funding and reshoring manufacturing projects [5]. - As of Q2 2024, Sterling's backlog reached $2.1 billion, a 21% year-over-year increase, with the E-Infrastructure segment experiencing 7% growth [7]. - More than 40% of the E-Infrastructure backlog is attributed to large data centers, reflecting the growing need for these facilities due to advancements in cloud computing and AI [6][7]. Group 3: Financial Performance - In the first half of 2024, Sterling's operating income grew by 23.7%, primarily due to a focus on high-margin projects like data centers [9]. - The E-Infrastructure segment achieved an operating margin of 21.4% in Q2, indicating strong profitability [11]. - Revenues in the transportation segment increased by 45.6% year-over-year in the first half of 2024, supported by federal infrastructure spending [12]. Group 4: Cash Flow and Balance Sheet - As of Q2 2024, Sterling has a cash balance of $540 million, exceeding its total debt of $330.3 million, indicating a strong financial position [14][15]. - The company maintains a conservative leverage profile with an EBITDA Debt Coverage Ratio of 1.1x and has untapped credit facilities available [15]. Group 5: Future Outlook - The recent 50-basis point rate cut by the Federal Reserve is expected to lower borrowing costs, potentially reviving smaller commercial and residential projects, which could further enhance Sterling's growth prospects [16]. - The company has consistently surpassed profit estimates, with an average earnings surprise of 17.4%, and is projected to achieve 26.6% growth in 2024 [17]. Group 6: Valuation - STRL's stock is currently considered slightly overvalued compared to its industry peers, despite having a trailing 12-month return on equity of 25.6%, which is higher than the industry average of 19.2% [18]. Group 7: Investment Consideration - Despite trading near its 52-week high, STRL stock remains an attractive option for investors due to its strong financials, favorable market conditions, and strategic focus on high-margin projects [20][21].

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, September 26th: Yelp Inc. (YELP) : This company that helps connect consumers with local businesses carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.7% over the last 60 days. Yelp has a PEG ratio of 0.82 compared with 1.38 for the industry. The company possesses a Growth Score of B. Unilever PLC (UL) : This fast-moving consumer goods compan ...

The most recent trading session ended with Sterling Infrastructure (STRL) standing at $148.16, reflecting a +0.37% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.19%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.36%. Coming into today, shares of the civil construction company had gained 29.86% in the past month. In that same time, the Construction sector gained 8.17%, while the S&P 500 ...

Core Viewpoint - Sterling Infrastructure (STRL) has shown significant stock performance, with a 17.5% increase over the past month and a 53.5% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Engineering - R and D Services industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.67 against a consensus estimate of $1.43 in its last earnings report [2]. - For the current fiscal year, Sterling Infrastructure is projected to achieve earnings of $5.66 per share on revenues of $2.16 billion, reflecting a 26.62% increase in EPS and a 9.69% increase in revenues [3]. - The forecast for the next fiscal year indicates expected earnings of $6.02 per share on $2.33 billion in revenues, representing year-over-year changes of 6.45% and 7.74%, respectively [3]. Valuation Metrics - The stock currently trades at a valuation of 23.9X current fiscal year EPS estimates, which is above the peer industry average of 21.7X [7]. - On a trailing cash flow basis, the stock trades at 21X compared to the peer group's average of 16.4X, with a PEG ratio of 1.59 [7]. - The company holds a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6]. Zacks Rank - Sterling Infrastructure has a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for further gains [9].

Sterling Infrastructure (STRL) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this civil construction company have returned +17.1%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Engineering - R and D Services industry, which Sterling Infrastructure falls in, has gained 0.2%. The key question now is: What co ...

The latest trading session saw Sterling Infrastructure (STRL) ending at $128.81, denoting a +1.35% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.13%. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq depreciated by 0.52%. The civil construction company's shares have seen an increase of 13.55% over the last month, surpassing the Construction sector's gain of 5.71% and the S&P 500's gain of 3.67%. The investment community will be pay ...

Core Investment Theme - The article emphasizes the "picks-and-shovels" investment theme related to AI, focusing on companies that provide essential infrastructure for AI development rather than those directly involved in AI technology [2][3]. Company Spotlight: Sterling Infrastructure, Inc. (STRL) - STRL is highlighted as a strong player in the picks-and-shovels AI theme, particularly in data center construction, which is expected to yield market-beating returns with lower risk compared to high-profile AI stocks like NVIDIA [3][10]. - STRL's business is organized into three segments: E-Infrastructure Solutions, Transportation Solutions, and Building Solutions, with E-Infrastructure being the largest segment [6][7]. Financial Performance - STRL's revenue and operating profit have shown growth, with a notable increase in operating margins across its segments. For instance, the operating margin for E-Infrastructure Solutions improved from 13.42% in 2022 to 18.52% in the first half of 2024 [7][10]. - The company reported a revenue of $2.17 billion for 2024, with projections for continued growth in 2025 [18]. Market Trends and Demand - There is a significant demand for larger data center projects, with STRL's backlog for data centers now accounting for over 40% of its total backlog, indicating strong future growth potential [11][12]. - The company is expanding geographically, having secured large data center projects in the Rocky Mountain region, which diversifies its operational footprint [11][12]. Strategic Focus - STRL is transitioning from low-margin, high-volume work to higher-margin projects, which is expected to enhance profitability. This strategic shift is reflected in its financial metrics, showing above-peer earnings growth despite lower revenue growth [25][26]. - The company has a disciplined approach to capital allocation, focusing on strategic M&A and share repurchase programs to enhance shareholder value [28][29]. Competitive Position - STRL has consistently outperformed its peers in the Construction and Engineering Industry, as well as the SPDR S&P 500 ETF Trust, showcasing its strong market position [23][24]. - The company maintains a solid financial structure, with favorable metrics such as an interest coverage ratio of 8.39 and a debt-to-equity ratio of 56.96%, indicating strong financial health compared to industry medians [27].