Sterling Construction (STRL) Outpaces Stock Market Gains: What You Should Know
Sterling Construction (STRL) closed the most recent trading day at $27.89, moving +0.87% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.
Coming into today, shares of the civil construction company had gained 9.37% in the past month. In that same time, the Construction sector lost 3.5%, while the S&P 500 gained 0.64%.
Sterling Construction will be looking to display strength as it nears its next earnings release. On that day, Sterling Construction is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $340.2 million, down 2.02% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Sterling Construction. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sterling Construction is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Sterling Construction currently has a Forward P/E ratio of 11.84. This represents a discount compared to its industry's average Forward P/E of 16.06.
The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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