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Great Lakes Dredge & Dock (GLDD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Great Lakes Dredge & Dock (GLDD) closed at $11.05 in the latest trading session, marking a +1.66% move from the prior day. This move outpaced the S&P 500's daily gain of 0.36%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.27%.

Coming into today, shares of the provider of dredging and dock-contracting services had gained 3.62% in the past month. In that same time, the Construction sector lost 0.29%, while the S&P 500 gained 3.98%.

Wall Street will be looking for positivity from GLDD as it approaches its next earnings report date. On that day, GLDD is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 700%. Our most recent consensus estimate is calling for quarterly revenue of $207.50 million, up 37.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.68 per share and revenue of $747.50 million. These totals would mark changes of +300% and +10.78%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GLDD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. GLDD currently has a Zacks Rank of #2 (Buy).

Digging into valuation, GLDD currently has a Forward P/E ratio of 15.98. Its industry sports an average Forward P/E of 11.13, so we one might conclude that GLDD is trading at a premium comparatively.

The Building Products - Heavy Construction industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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