Granite (GVA) Wins $55M Grant Road Expansion Contract in Tucson
Granite Construction Incorporated GVA clinched a $55 million contract from the City of Tucson to widen Grant Road, marking a strategic move for the company. Financed by the Regional Transportation Authority, the project encompasses a comprehensive expansion featuring six through lanes, a median, turn lane pockets, curbs, sidewalks, landscaping, and more.
With funding expected to be incorporated into Granite's first-quarter Committed and Awarded Projects (CAP), the project aligns with the company's vertically integrated business model, tapping into its Swan Plant facility for 36,000 tons of hot-mix asphalt, 40,000 tons of aggregate base course, and 32,500 tons of storm/water/sewer materials. Beyond boosting the local workforce, this project becomes a cornerstone for the Arizona region.
Commencing in April 2024 and concluding by December 2026, the multi-phase project not only enhances Granite's market presence but also fulfills critical regional infrastructure needs. As an essential addition to Granite's portfolio, this contract is poised to bolster the company's standing in the construction sector, further solidifying its role in advancing Arizona's infrastructure landscape.
Share Price Performance
Shares of GVA gained 7.7% in the past six months against the Zacks Building Products - Heavy Construction industry’s 11% decline.
Image Source: Zacks Investment Research
The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.
The performance of Granite’s operating segments showcased strong market growth in third-quarter fiscal 2023, benefiting from a robust public funding environment. CAP reached $5.6 billion in the third quarter, reflecting a sequential increase of 3% and year-over-year growth of 37%. Both public and private markets continued to be strong. GVA expects substantial opportunities to build CAP in the fourth quarter and further in 2024.
Zacks Rank & Other Key Picks
Granite currently carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Zacks Construction sector:
Martin Marietta Materials, Inc. MLM currently carries a Zacks Rank #2. The stock has gained 12.9% in the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share (EPS) indicates growth of 9.5% and 13.1%, respectively, from a year ago.
North American Construction Group Ltd. NOA currently carries a Zacks Rank #2. The stock has declined 9.1% in the past six months.
NOA surpassed earnings expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 22.4%. The Zacks Consensus Estimate for NOA’s 2024 sales and EPS indicates growth of 44.1% and 51.7%, respectively, from a year ago.
Howmet Aerospace Inc. HWM currently carries a Zacks Rank #2. The stock has gained 17.1% in the past six months.
HWM surpassed earnings expectations in three of the trailing four quarters and met on one occasion, the average surprise being 5%. The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates growth of 7.5% and 21.7%, respectively, from a year ago.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report
Granite Construction Incorporated (GVA) : Free Stock Analysis Report
North American Construction Group Ltd. (NOA) : Free Stock Analysis Report
Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
