Great Lakes Dredge & Dock (GLDD) Surges 12.7%: Is This an Indication of Further Gains?

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) shares experienced a significant increase of 12.7% to $15.44, driven by strong trading volume and positive investor sentiment due to government spending on coastal protection and dredging services [1][2]. Company Performance - GLDD is projected to report quarterly earnings of $0.22 per share, reflecting a year-over-year decline of 24.1%, while revenues are expected to reach $219.45 million, an increase of 8.2% from the previous year [3]. - The consensus EPS estimate for GLDD has been revised 5.7% higher in the last 30 days, indicating a positive trend that may lead to further price appreciation [4]. Market Context - GLDD's recent stock performance contrasts with its 3.2% gain over the past four weeks, highlighting a notable shift in investor confidence [1]. - The company is part of the Zacks Building Products - Heavy Construction industry, which includes Orion Marine Group (ORN), whose stock also saw a 4.6% increase [5]. Industry Insights - The positive outlook for GLDD is supported by increasing backlog trends and a $50 million share buyback program, which are expected to enhance investor confidence [2]. - In comparison, Orion Marine's EPS estimate remains unchanged at $0.05, representing a significant decline of 68.8% from the previous year [6].