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Sterling Construction (STRL) Stock Sinks As Market Gains: What You Should Know

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Zacks Equity Research
·2 min read
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Sterling Construction (STRL) closed at $21.64 in the latest trading session, marking a -1.19% move from the prior day. This move lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.38%.

Heading into today, shares of the civil construction company had lost 0.64% over the past month, lagging the Construction sector's gain of 6.57% and the S&P 500's gain of 2.33% in that time.

Wall Street will be looking for positivity from STRL as it approaches its next earnings report date. The company is expected to report EPS of $0.23, up 4.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $341.30 million, down 1.51% from the year-ago period.

Investors might also notice recent changes to analyst estimates for STRL. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STRL is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, STRL currently has a Forward P/E ratio of 11.65. This valuation marks a discount compared to its industry's average Forward P/E of 14.99.

The Building Products - Heavy Construction industry is part of the Construction sector. This group has a Zacks Industry Rank of 116, putting it in the top 46% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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