Core Insights - The bullish factors of rising earnings growth and anticipated interest rate cuts are expected to support stock purchases in October and throughout Q4 [1][2] - Investors are encouraged to utilize a Zacks screen to identify top Zacks Rank 1 (Strong Buy) stocks, which historically outperform the market [2][3] Zacks Rank 1 Stock Screening - The Zacks Rank 1 stocks have shown an average annual return of approximately 24.4% since 1988, making them a strong starting point for investment [5] - Key screening parameters include: - Zacks Rank equal to 1 - Positive percentage change in current quarter estimates over the last four weeks [6] - Top 5 stocks with the best average broker rating changes over the last four weeks [7] Featured Stock: Sterling Infrastructure, Inc. (STRL) - Sterling Infrastructure operates in the U.S. infrastructure sector, focusing on E-Infrastructure, Transportation, and Building Solutions [8] - The company is benefiting from trends such as the AI data center boom and energy industry expansion, with a backlog growth of 24% year-over-year, reaching $2 billion [10] - STRL's revenue is projected to grow by 7% in 2025 and 13% in 2026, with adjusted earnings expected to increase by 57% this year and 15% in FY26, reaching $10.98 per share [11] - The stock has experienced a significant increase of 2,300% over the past five years, although it has recently pulled back after reaching all-time highs [14]

Group 1 - Loomis Sayles Small Cap Growth Fund reported a return of 9.37% in Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% due to security selection issues in the information technology and financial sectors [1] - The fund highlighted Sterling Infrastructure, Inc. (NASDAQ:STRL) as a key stock, which had a one-month return of 22.46% and a 52-week gain of 135.21%, closing at $341.10 per share with a market capitalization of $10.407 billion on September 29, 2025 [2] - Sterling Infrastructure, Inc. specializes in e-infrastructure, transportation, and building solutions, experiencing a recovery after a selloff in Q1 2025, with strong performance in its data center business and positive management outlook for the coming years [3] Group 2 - Despite the positive outlook for Sterling Infrastructure, it was noted that the company is not among the 30 most popular stocks among hedge funds, with 25 hedge fund portfolios holding the stock at the end of Q2 2025, down from 30 in the previous quarter [4] - The potential of Sterling Infrastructure as an investment is acknowledged, but it is suggested that certain AI stocks may offer greater upside potential and lower downside risk [4] - Additional insights on Sterling Infrastructure were provided by Alger Weatherbie Specialized Growth Fund, indicating a broader interest in the company's performance [5]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Sterling Infrastructure (STRL) is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 40.8%, with projected EPS growth of 56.8% this year, significantly surpassing the industry average of 11.1% [4] Group 2: Financial Metrics - Sterling Infrastructure's year-over-year cash flow growth is 30.6%, exceeding the industry average of 17.2% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 39.7%, compared to the industry average of 7% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Sterling Infrastructure, with the Zacks Consensus Estimate for the current year increasing by 2.7% over the past month [8] - The combination of strong earnings estimate revisions and a Growth Score of B positions Sterling Infrastructure as a potential outperformer for growth investors [10]

Core Insights - Sterling Infrastructure (STRL) experienced a stock price decline of 1.63% to $338.44, underperforming the S&P 500, which fell by 0.5% [1] - Over the past month, STRL shares increased by 18.9%, outperforming the Construction sector's decline of 2.43% and the S&P 500's gain of 2.74% [1] Earnings Performance - The upcoming earnings disclosure is anticipated to show an EPS of $2.79, reflecting a growth of 41.62% year-over-year [2] - Revenue is projected at $612.4 million, indicating a 3.14% increase compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are estimated at $9.57 per share, representing a growth of 56.89%, with revenue expected to reach $2.26 billion, a 6.58% increase from the previous year [3] - Recent analyst estimate revisions suggest a favorable outlook on the company's business health and profitability [3] Zacks Rank and Valuation - Sterling Infrastructure holds a Zacks Rank of 1 (Strong Buy), with a historical average annual gain of +25% for 1 stocks since 1988 [5] - The Forward P/E ratio for STRL is 35.97, which is a premium compared to the industry average of 22.18 [6] - The PEG ratio for STRL is 2.4, compared to the industry average of 1.78, indicating a higher expected earnings growth rate [6] Industry Context - The Engineering - R and D Services industry, part of the Construction sector, has a Zacks Industry Rank of 156, placing it in the bottom 37% of over 250 industries [7] - Top-rated industries tend to outperform lower-rated ones by a factor of 2 to 1 [7]

Core Insights - Sterling Infrastructure, Inc. is leveraging scale, execution, and diversification to maintain its competitive edge amid increasing competition in the construction and infrastructure sector [1] - The company is strategically positioned in high-demand areas such as data centers, e-commerce distribution, and critical transportation projects, where reliability and speed are prioritized over cost [1] Financial Performance - Sterling's E-Infrastructure Solutions segment has seen a 44% year-over-year increase in backlog, driven by mission-critical projects like data centers, which now constitute a majority of its pipeline [2] - The company reported double-digit revenue growth in its latest quarter, with gross margins expanding by 400 basis points to 23.3% [4] - Management has raised full-year EPS guidance, reflecting confidence in future performance [4] Segment Analysis - Transportation Solutions is supported by federal infrastructure funding and regional demand, although the winding down of low-margin Texas highway work may temporarily impact backlog but is expected to enhance profitability in the long run [3] - The Building Solutions segment is facing challenges due to housing affordability issues, with anticipated revenue declines through year-end [3] Competitive Landscape - Sterling's competitive advantage is bolstered by its ability to execute large-scale, multi-phase projects on time, which has resulted in repeat business and pricing power [2] - Competitors like Granite Construction and Tutor Perini are facing execution challenges, highlighting Sterling's relative strength in delivering mission-critical projects efficiently [6][7] Strategic Initiatives - To enhance its competitive position, Sterling is pursuing strategic acquisitions, such as the pending purchase of CEC Facilities Group, which will add mechanical and electrical services to its offerings [5] - The company aims to combine operational discipline with selective expansion to navigate a tightening construction market [5] Stock Performance and Valuation - Sterling's stock has surged by 50.4% over the past three months, significantly outperforming the Zacks Engineering - R and D Services industry's growth of 6.6% [9] - Earnings estimates for 2025 and 2026 have been revised upward to $9.57 and $10.98 per share, indicating year-over-year growth of 56.9% and 14.7%, respectively [12] - The company is currently trading at a forward 12-month P/E ratio of 32.46, reflecting a premium compared to industry peers [13]

Core Insights - Alger Weatherbie Specialized Growth Fund's second-quarter 2025 investor letter highlights the impact of trade policy uncertainty and subsequent market recovery, with the S&P 500 achieving a 10.94% gain by the end of Q2 [1] - Sterling Infrastructure, Inc. (NASDAQ:STRL) is a key holding in the fund, showing significant stock performance with a one-month return of 28.50% and a 52-week gain of 154.79% [2] - The company operates in three main business areas: Transportation Solutions, E-Infrastructure Solutions, and Building Solutions, with the E-Infrastructure segment experiencing rapid growth [3] Company Performance - Sterling Infrastructure, Inc. closed at $371.84 per share on September 23, 2025, with a market capitalization of $11.311 billion [2] - The company reported stronger-than-expected operating results, particularly in the E-Infrastructure and Transportation segments, while Building Solutions slightly underperformed [3] - Management has increased revenue guidance for the full year, citing growth in the backlog of future projects within the E-Infrastructure Solutions segment [3]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments in complex instruments like cryptocurrencies and CFDs [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about high-risk financial instruments, including cryptocurrencies and CFDs, which are complex and can lead to significant financial losses [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1]. - The content may not be real-time or accurate, and prices may be provided by market makers rather than exchanges [1].

Core Insights - Sterling Infrastructure, Inc. (STRL) and AECOM (ACM) are pivotal players in the U.S. infrastructure sector, with STRL focusing on execution and project delivery, while AECOM excels in planning and program management [1][2] - Both companies are positioned to benefit from trends such as increased data center construction, transportation upgrades, and the energy transition, creating diverse opportunities within the infrastructure value chain [2] - The Federal Reserve's recent rate cut to a target of 4-4.25% may enhance public and private infrastructure investments, further supporting demand for both companies [3] Sterling Infrastructure (STRL) - STRL is concentrating on high-value markets, including data centers and e-commerce distribution, leading to a 21% year-over-year revenue increase in Q2 2025, with E-Infrastructure Solutions growing by 29% and Transportation Solutions by 24% [4][5] - Adjusted earnings per share rose 41% to $2.69, and gross margins expanded by 400 basis points to 23.3%, indicating strong profitability and long-term visibility [4] - The total backlog reached $2 billion, up 24% from the previous year, with E-Infrastructure backlog growing 44% to $1.2 billion, reflecting sustained demand [7][8] - Despite a sequential backlog decline due to seasonal factors, STRL's growth outlook remains robust, supported by a strong project pipeline [6][7] AECOM (ACM) - AECOM reported a 6% year-over-year growth in net service revenues (NSR) to $1.94 billion in the first nine months of fiscal 2025, driven by strong performance in the Americas and international markets [10][11] - The Americas segment saw an 8% increase in NSR, highlighting robust activity in transportation and environmental projects [11] - AECOM's total backlog stood at $24.6 billion, up 5% from the prior year, providing long-term growth prospects and multi-year visibility [13] - The company faces challenges from political changes and funding delays in international markets, which may impact near-term results [12] Stock Performance & Valuation - STRL's share price has significantly outperformed AECOM and the broader Zacks Engineering - R and D Services industry over the past three months [14] - Historically, STRL has traded at a higher forward 12-month price-to-earnings (P/E) ratio compared to AECOM [15] - The Zacks Consensus Estimate for STRL's 2025 EPS indicates a 56.9% year-over-year growth, while ACM's estimate suggests a 15.9% increase [18][20] Investment Outlook - STRL is emerging as a growth leader in the infrastructure space, supported by its focus on high-value markets and a solid backlog, leading to raised 2025 guidance [23] - AECOM benefits from steady demand across various projects but faces greater exposure to international risks and limited movement in earnings estimates [24] - Given STRL's stronger share price performance, upward estimate revisions, and robust earnings growth, it presents a better investment opportunity compared to AECOM [25]

Core Viewpoint - Sterling Infrastructure (STRL) shares have experienced a significant rally, attributed to positive market sentiment following a recent interest rate cut by the Federal Reserve, alongside strong expectations for upcoming earnings and revenue growth [1][2][3]. Company Performance - STRL shares increased by 3.3% to close at $360.25, with a notable trading volume that exceeded typical levels, contributing to a 25.4% gain over the past four weeks [1]. - The company is projected to report quarterly earnings of $2.79 per share, reflecting a year-over-year increase of 41.6%, with expected revenues of $612.4 million, up 3.1% from the previous year [3]. Earnings Estimates - The consensus EPS estimate for STRL has been revised 1.5% higher in the last 30 days, indicating a positive trend that often correlates with stock price appreciation [4]. - Empirical research suggests a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring STRL's performance [3][4]. Industry Context - Sterling Infrastructure operates within the Zacks Engineering - R and D Services industry, which is currently experiencing a boom in infrastructure demand [2][5]. - Another company in the same industry, M-tron Industries, Inc. (MPTI), has shown a 7.2% increase in its stock price, closing at $52.52, with a 13.4% return over the past month [5].

Core Insights - Sterling Infrastructure, Inc. (STRL) is establishing a significant presence in the development of America's digital infrastructure, with Q2 2025 revenues increasing by 21% year-over-year to $614.5 million and adjusted EPS rising by 41% to $2.69, alongside meaningful margin expansion [1][11] E-Infrastructure Solutions - The E-Infrastructure Solutions segment is experiencing explosive demand, particularly from data centers and e-commerce facilities, with data centers now representing 62% of the E-Infrastructure backlog and revenues from this market more than doubling year-over-year [2][11] Backlog and Acquisitions - STRL has a robust backlog of $2 billion, including $1.2 billion in E-Infrastructure, providing multiyear visibility. The upcoming acquisition of CEC Facilities Group will enhance Sterling's electrical and mechanical capabilities, positioning the company as a strategic partner in complex facility development [3][11] Macro Trends - Favorable macro trends include rising capital expenditures from hyperscale tech firms, a pipeline of semiconductor plants, and accelerating e-commerce buildouts, aligning with Sterling's strengths. Although there are near-term challenges in the Building Solutions segment, the diversified portfolio mitigates risks [4][11] Competitive Landscape - STRL faces competition from major players like Quanta Services and MasTec, both of which are well-positioned in the digital and clean energy sectors. Quanta Services focuses on utility and grid modernization, while MasTec is expanding in telecommunications and renewable infrastructure [6][8][9] Stock Performance - STRL's stock has surged by 59.9% over the past three months, outperforming the Zacks Engineering - R and D Services industry, the broader Zacks Construction sector, and the S&P 500 index [10] Valuation and Earnings Estimates - Sterling's stock is trading at a premium with a forward 12-month P/E ratio of 32.96. Earnings estimates for 2025 and 2026 have increased to $9.57 and $10.98 per share, reflecting year-over-year growth of 56.9% and 14.7%, respectively [12][14]