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 ...

Company Performance - Sterling Infrastructure (STRL) closed at $148.16, reflecting a +0.37% change from the previous trading day's closing, outperforming the S&P 500's daily loss of 0.19% [1] - The company has gained 29.86% in the past month, significantly higher than the Construction sector's gain of 8.17% and the S&P 500's gain of 2.06% [2] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $1.68, representing a 33.33% increase from the same quarter last year, with a projected revenue of $599.9 million, indicating a 7.06% rise from the equivalent quarter last year [3] - For the entire fiscal year, earnings are forecasted at $5.66 per share and revenue at $2.16 billion, reflecting increases of +26.62% and +9.69% respectively from the previous year [4] Analyst Estimates and Rankings - Recent adjustments to analyst estimates are seen as positive indicators for the company's business outlook, with the Zacks Rank system currently rating Sterling Infrastructure as 1 (Strong Buy) [4][6] - The Zacks Rank system has a strong historical performance, with 1 stocks generating an average annual return of +25% since 1988 [6] Valuation Metrics - Sterling Infrastructure has a Forward P/E ratio of 26.1, which is a premium compared to the industry's average Forward P/E of 22.02, and a PEG ratio of 1.74, compared to the industry average of 1.58 [7] - The Engineering - R and D Services industry, which includes Sterling Infrastructure, has a Zacks Industry Rank of 88, placing it in the top 35% of over 250 industries [8]

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].

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 ...