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].

In the latest trading session, Sterling Infrastructure (STRL) closed at $111.29, marking a +1.22% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.45%. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq appreciated by 0.84%. Prior to today's trading, shares of the civil construction company had gained 4.12% over the past month. This has outpaced the Construction sector's gain of 1.61% and the S&P 500's gain of 2.54% in that time. Analysts and i ...

THE WOODLANDS, Texas, Sept. 10, 2024 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that management is participating in the following investor conference: D. A. Davidson 23rd Annual Diversified Industrials & Services Conference Date: September 19, 2024 Venue: Four Seasons Hotel, Nashville, TN Company presentation is scheduled at 8:00-8:35 am ET Webcast: https://wsw.com/webcast/dadco66/strl/1947843 Sterling's management will participate in a fires ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock. By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss. However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style S ...

Investors interested in Engineering - R and D Services stocks are likely familiar with Sterling Infrastructure (STRL) and Aecom Technology (ACM) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. 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 favors stocks with strong earnings ...

Investors might want to bet on Sterling Infrastructure (STRL) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the ...

Sterling Infrastructure (STRL) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this civil construction company have returned +5.3%, compared to the Zacks S&P 500 composite's +3.4% change. During this period, the Zacks Engineering - R and D Services industry, which Sterling Infrastructure falls in, has gained 4.3%. The key question no ...

Strategically seeking to be the leading infrastructure service provider in the United States, Sterling Infrastructure, Inc. (STRL) is currently riding high on increased federal funding. Its shares have soared 44% in the past year, outpacing the 38.2% gain in the Zacks Engineering - R and D Services industry. Image Source: Zacks Investment Research Additionally, STRL shares have outperformed the Zacks Construction sector and S&P 500, which has increased 33.5% and 24.4%, respectively, in the past year. STRL s ...

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Sterling Infrastructure (STRL) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Earnings Growth - Sterling Infrastructure has a historical EPS growth rate of 43%, with projected EPS growth of 26.5% for the current year, significantly outperforming the industry average of 15.1% [4]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 31.6%, surpassing the industry average of 11.7%. Its annualized cash flow growth rate over the past 3-5 years stands at 34.5%, compared to the industry average of 3.4% [5][6]. Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Sterling Infrastructure, with the Zacks Consensus Estimate for the current year increasing by 7.8% over the past month, indicating strong future performance potential [7][8]. Investment Positioning - The combination of a Growth Score of A and a Zacks Rank of 2 positions Sterling Infrastructure favorably for outperformance, making it an attractive option for growth investors [8][9].

Core Insights - Sterling Infrastructure (STRL) is currently rated higher than Aecom Technology (ACM) based on Zacks Rank, with STRL at 2 (Buy) and ACM at 4 (Sell) [3] - STRL shows a more favorable earnings estimate revision trend compared to ACM, indicating a better analyst outlook for STRL [3] Valuation Metrics - STRL has a forward P/E ratio of 20.10, while ACM has a forward P/E of 21.62, suggesting STRL may be undervalued relative to ACM [5] - The PEG ratio for STRL is 1.34, compared to ACM's PEG ratio of 1.61, indicating STRL's expected earnings growth is more favorable [5] - STRL's P/B ratio is 5.15, slightly lower than ACM's P/B of 5.25, which may suggest a better valuation for STRL [6] - STRL holds a Value grade of B, while ACM has a Value grade of C, further supporting STRL as the superior value option [6]