Sterling Infrastructure (STRL) Falls More Steeply Than Broader Market: What Investors Need to Know

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]