Core Viewpoint - Sterling Infrastructure, Inc. (STRL) is expected to report its second-quarter 2025 results on August 4, with a focus on its performance in e-infrastructure, building solutions, and transportation solutions sectors [1]. Financial Performance - In the last reported quarter, Sterling achieved adjusted earnings per share (EPS) of $1.63, reflecting a 29% year-over-year growth, and adjusted EBITDA increased by 31% to $80 million [2]. - Revenues for the last quarter were $430.9 million, surpassing estimates and showing a 7% growth on a pro-forma basis, despite a reported year-over-year decline due to a joint venture accounting change [2]. - The gross margin expanded by 450 basis points to 22%, indicating operational efficiencies and a favorable project mix [2]. Earnings Estimates - The Zacks Consensus Estimate for the upcoming second-quarter EPS is $2.26, suggesting a 35.3% growth from the previous year, while the revenue estimate is $555.1 million, indicating a 4.8% year-over-year decline [6][7]. - For the full year 2025, STRL is projected to register a 41.2% EPS growth compared to the previous year [5]. Segment Performance - The E-Infrastructure Solutions segment, which accounted for 51% of first-quarter 2025 revenues, is expected to remain a key growth driver, benefiting from stable demand and rising data center activity [11]. - The Transportation Solutions segment, contributing 28% to total revenues, is anticipated to support growth due to a strong backlog and steady bid activity [12]. - The Building Solutions segment, which made up 21% of revenues, is expected to face mixed conditions, with some benefits from recent acquisitions and steady activity in core regions [13]. Market Conditions - The company is likely to experience pressures from residential market softness, inflation, and broader market volatility, which may impact top-line performance [14]. - Despite these challenges, Sterling's focus on high-value infrastructure projects and disciplined project execution is expected to support margin improvement [15]. Stock Performance - Year-to-date, STRL shares have gained 58.8%, outperforming the Zacks Engineering - R and D Services industry and the S&P 500 [16]. - The current forward 12-month price-to-earnings (P/E) ratio for STRL is 29.37, which is a 30.3% premium to the industry average of 22.54 [18]. Strategic Outlook - The company is positioned for growth through 2025, supported by solid execution, a favorable project mix, and a strong backlog, despite anticipated near-term challenges [22].

Core Insights - Sterling Infrastructure, Inc. (STRL) is focusing on enhancing its modular construction capabilities and pursuing inorganic growth through mergers and acquisitions, driven by increasing market demand for data centers, AI infrastructure, and utility grid modernization [1][3] Group 1: Business Operations and Market Trends - The E-Infrastructure Solutions segment, which includes modular buildings and data centers, accounted for 51% of STRL's revenues in the first quarter of 2025, with a backlog growth of 27% year-over-year to $1.2 billion, where over 65% is related to data center projects [2][7] - STRL is actively pursuing strategic investments in mergers and acquisitions, recently announcing a definitive agreement to acquire CEC Facilities Group, LLC for $505 million, which is expected to enhance its market reach and cross-selling opportunities in Texas and other key regions [3][7] Group 2: Financial Performance and Projections - For 2025, STRL anticipates capital expenditures between $70 million and $80 million, an increase from $70.8 million in 2024, which is expected to improve revenue visibility and profit structure [4] - STRL's earnings per share (EPS) for 2025 is forecasted to grow by 41.2% to $8.61, with further growth of 10.1% to $9.48 in 2026 [12] Group 3: Stock Performance and Valuation - STRL's stock has surged 69% in the past three months, outperforming competitors in the Zacks Engineering - R and D Services industry and the broader market [5][8] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 27.78, indicating a premium valuation compared to industry peers, suggesting strong market potential [9][11]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Sterling Infrastructure (STRL) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Sterling Infrastructure cur ...

Core Viewpoint - Sterling Infrastructure, Inc. is set to release its financial results for the second quarter of 2025 on August 4, 2025, after market close, followed by a conference call on August 5, 2025, to discuss the results and outlook for the year [1][2]. Company Overview - Sterling Infrastructure operates through various subsidiaries across three segments: E-Infrastructure, Transportation, and Building Solutions, primarily in the Southern, Northeastern, Mid-Atlantic, Rocky Mountain regions, and the Pacific Islands [4]. - E-Infrastructure Solutions focuses on large-scale site development services for manufacturing, data centers, distribution centers, warehousing, and power generation [4]. - Transportation Solutions encompasses infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail, and storm drainage systems [4]. - Building Solutions includes residential and commercial concrete foundations, parking structures, plumbing services, and surveys for new residential builds [4]. - The company emphasizes sustainability and responsible operations to enhance the quality of life for society [4]. Leadership Statement - CEO Joe Cutillo stated that the company builds and services the infrastructure essential for economic functioning, mobility, and national growth [5].

Group 1 - Babcock International Group PLC (BCKIY) has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sterling Infrastructure (STRL) has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy targets companies with positive earnings estimate revision trends, which is a key factor for value investors [2][3] - Value investors utilize various valuation metrics, including P/E ratio, P/S ratio, earnings yield, and cash flow per share, to assess whether a company is undervalued [4] Group 2 - BCKIY has a forward P/E ratio of 19.07, significantly lower than STRL's forward P/E of 29.13, suggesting BCKIY may be more attractively priced [5] - BCKIY's PEG ratio is 0.68, indicating a favorable growth outlook compared to STRL's PEG ratio of 1.94, which suggests higher valuation relative to growth [5] - BCKIY's P/B ratio is 9.2, while STRL's P/B ratio is 9.22, showing that both companies are similarly valued in terms of book value, but BCKIY has a better overall valuation profile [6] - Based on these metrics, BCKIY holds a Value grade of B, while STRL has a Value grade of D, making BCKIY the more attractive option for value investors [6]

Company Overview - Sterling Infrastructure stock has gained notoriety amid President Joe Biden's $12 trillion infrastructure bill [1] - The company is a top performer in the industrial product sector and has continued to hit new all-time highs [2] - Sterling Infrastructure's total backlog currently stands at around $2 billion, providing a solid cushion for future revenue [8] Stock Performance - STRL has spiked nearly 100% over the last year and is up more than 40% year to date [3] - The stock has seen gains of more than 2,400% in the last 5 years [3] - Sterling Infrastructure stock lends a Zach's rank number three hold at the moment [14] Strategic Initiatives - Sterling Infrastructure announced in June that it will be acquiring CEC facilities group for $55 million, expanding its reach into mission critical electrical contracting for semiconductors and other data center projects [5] - The CEC acquisition is expected to add nearly $400 million to Sterling Infrastructure's topline this year alone and over $50 million in EBITDA [5] - Sterling Infrastructure has secured several AI related projects, including one with a reward of up to $100 million for a massive data center development in the southeastern United States [5] - The company focuses on high margin projects such as AI endeavors and the Hyundai engineering America facility in Georgia [6] Financial Outlook - Sterling Infrastructure's total sales are expected to dip 1% in fiscal 2025 to around $209 billion, but are expected to rebound in fiscal year 26 and rise about 8% to a new peak of $226 billion [9] - Sterling Infrastructure's bottom line is slated to expand 41% in fiscal year 25 to new peaks of $861 per share from record EPS of $610 last year [9] - Fiscal year 26 EPS is projected to spike another 10% to $948 [10] Valuation - Sterling Infrastructure stock trades at 281% times forward earnings, a slight premium to the benchmark S&P 500's 242% times forward earnings multiple and it Zach's engineering R&D services industry average of 227% times [11]

Core Insights - Sterling Infrastructure, Inc. (STRL) is focusing on large-scale mission-critical projects, particularly data centers, due to a weak housing market, which is positively impacting its revenue visibility and bottom line [1][4] - The demand for data center projects is strong, driven by the rise of Artificial Intelligence and digital transformation, with mission-critical projects making up 51% of the E-Infrastructure segment's backlog [2][3] - STRL's total backlog increased to $2.13 billion, with a year-over-year growth of 27% in the E-Infrastructure segment, indicating robust market trends [2][9] Company Performance - STRL's legacy residential business saw a 19% decline year-over-year, reflecting challenges in the housing market due to high mortgage rates and inflation [3][9] - The company is optimistic about its strategic shift towards mission-critical projects, which is expected to provide continuous revenue flow and mitigate profitability risks [3][4] - STRL raised its 2025 EPS guidance to $8.40-$8.90, indicating a 25.5% growth amid favorable infrastructure trends [9] Competitive Landscape - STRL faces competition from firms like Quanta Services, Inc. and MasTec Inc. in the public infrastructure sector, particularly in mission-critical infrastructure solutions [5] - Quanta's backlog grew 19.6% year-over-year to $16.37 billion, while MasTec's backlog increased by 23.7% year-over-year to $15.88 billion, showcasing strong competition in the market [6][7] Stock Performance - STRL's stock has surged 71.8% in the past three months, outperforming the Zacks Engineering - R and D Services industry and the broader market [8] - The stock is currently trading at a forward P/E ratio of 26.6, indicating a premium valuation compared to industry peers, reflecting strong market potential [11] - Earnings estimates for 2025 and 2026 remain unchanged at $8.61 and $9.48 per share, respectively, with year-over-year growth of 41.2% and 10.1% [13]

Core Viewpoint - Sterling Infrastructure (STRL) stock has reached new all-time highs, raising questions about whether to buy, hold, or take profits at over $240 per share [1] Performance Summary - STRL has increased nearly +100% over the last year, with a more than +40% rise year to date, and has gained nearly +2,400% over the last five years [2] Acquisition and Growth Strategy - Sterling Infrastructure announced the acquisition of CEC Facilities Group for $505 million, pending regulatory approval, which is expected to close in Q3 and add nearly $400 million to revenue this year and over $50 million in EBITDA [5][6] - The company is benefiting from the AI boom, securing several AI-related projects, including a $100 million contract for a data center development in the Southeastern United States [6] Project Focus and Backlog - The company is concentrating on high-margin projects, such as AI initiatives and the Hyundai Engineering America facility in Georgia, aimed at boosting EV and hybrid car production [7] - Sterling Infrastructure's total backlog currently stands at around $2 billion, providing a solid cushion for future revenue [9] Financial Outlook - Total sales are expected to dip 1% in fiscal 2025 to $2.09 billion, but are projected to rebound by 8% in FY26 to $2.26 billion [11] - The bottom line is expected to expand 41% in FY25 to $8.61 per share, with FY26 EPS projected to rise another 10% to $9.48 [13] Earnings Estimates - Current Zacks Consensus Estimates for FY25 EPS is $8.61, with year-over-year growth estimated at 41.15% [14] Valuation Metrics - STRL trades at 28.1X forward earnings, slightly above the S&P 500's 24.2X and the Zacks Engineering-R and D Services Industry Average of 22.7X [15] Strategic Insights - Following a significant rally, STRL holds a Zacks Rank 3 (Hold), indicating it remains a valuable asset in advancing America's infrastructure, though there is temptation to take profits at all-time highs [17] - Analysts have become bullish after the CEC acquisition announcement, suggesting STRL may serve as a prime buy-the-dip target [18]

Core Insights - Sterling Infrastructure, Inc. and Tutor Perini Corporation are capitalizing on a strong infrastructure cycle, focusing on large-scale public and civil projects, supported by federal and state spending programs like the Infrastructure Investment and Jobs Act (IIJA) [1][2][23] - Both companies have healthy backlogs and are experiencing consistent award wins, which are crucial for sustaining long-term earnings momentum [2][23] Sterling Infrastructure, Inc. (STRL) - Sterling is enhancing its position as a diversified infrastructure provider, focusing on high-margin design-build and e-infrastructure solutions in growth-heavy regions [2][4] - In Q1 2025, Sterling's E-Infrastructure Solutions segment saw revenues increase by 18% year-over-year, with adjusted operating income rising by 61% and segment margins exceeding 23% [5] - The total backlog for Sterling reached $2.1 billion, with the E-Infrastructure portion at $1.2 billion, reflecting a 27% year-over-year increase [6] - The Transportation Solutions segment's backlog stood at $861 million, up 11% year-over-year, indicating strong revenue visibility [7] - Management anticipates mid-single-digit revenue growth and mid-teen operating profit growth for 2025, supported by robust pipelines in specific markets [8] - Ongoing federal investment under the IIJA enhances Sterling's long-term growth prospects, with a book-to-burn ratio above 2X [9][10] Tutor Perini Corporation (TPC) - Tutor Perini is expanding its portfolio of civil and specialty construction projects, aligning with national funding priorities to benefit from multi-year government investments [11][12] - In Q1 2025, Tutor Perini secured approximately $2 billion in new awards, pushing its backlog to a record $19.4 billion, nearly doubling from the previous year [12] - The company is experiencing steady commercial demand across various sectors, including healthcare and education, which adds balance to its backlog [13] - Tutor Perini raised its 2025 earnings guidance, emphasizing disciplined bidding and execution efficiency [14] - The company is well-positioned to pursue profitable growth in 2026 and beyond due to its solid pipeline and sustained market demand [14] Share Price Performance - Year-to-date, Tutor Perini's share price has increased by 102.4%, significantly outperforming Sterling's 43.5% gain and the broader Construction sector's 2.7% rise [15] Valuation and Earnings Estimates - Tutor Perini is trading at a lower forward 12-month price-to-earnings (P/E) ratio compared to Sterling [17] - The Zacks Consensus Estimate for 2025 earnings per share indicates a 41.2% improvement for Sterling and a 155.9% increase for Tutor Perini [19] Conclusion - Both companies are well-positioned to benefit from strong infrastructure spending and expanding project pipelines, making them attractive options for investors seeking durable growth in the construction sector [23][24] - Tutor Perini's more attractive valuation and stronger projected EPS growth for 2025 suggest it may be the more compelling investment choice [25]

Group 1: Small-Cap Market Outlook - Small-cap stocks are expected to break out in the second half of 2025 due to potential interest rate cuts, improving macroeconomic conditions, and attractive valuations [1] - Institutional investors are beginning to rotate into small-cap stocks after two years of underperformance compared to large-cap peers [1] Group 2: Boot Barn (BOOT) - Boot Barn reported a 5% year-over-year growth in consolidated same-store sales for FY 2025 and projects a 2% growth for the current year while planning to increase store count by 14% [2] - The company anticipates a total net sales growth of 13%, but this guidance is contingent on raising prices due to tariffs, particularly from China and Mexico [3][4] - Despite tariff concerns slowing institutional buying in Q2 2025, Boot Barn's stock has increased over 35% in the last 12 months and over 11% in 2025, with a market cap exceeding $5 billion [5][6] Group 3: Sterling Infrastructure (STRL) - Sterling Infrastructure has seen its stock rise over 2,300% in the past five years, leading to a market cap of over $7 billion [7] - The company serves large blue-chip clients in e-commerce and data centers and has announced plans to acquire CEC Facilities Group to expand its opportunities [8] - Institutional buying for STRL reached $46 million in the current quarter, significantly outpacing institutional selling of $1 million [9] Group 4: Tactile Systems Technology (TCMD) - Tactile Systems, with a market cap of $230 million, specializes in home therapy solutions for chronic edema and related conditions, targeting a $10 billion total addressable market [11][12] - The company has shown steady revenue growth but is not consistently profitable, with TCMD stock down 41% in 2025 due to skepticism about its market size [13] - Institutional buying has slowed, but notable support comes from Congresswoman Tina Smith, who has made two purchases of the stock [14]