Sterling (STRL) Reaches 52-Week High: Will It Move Higher?
Sterling Infrastructure, Inc. STRL touched a new 52-week high of $58.23 on Jul 3, 2023. The stock pulled back to end the trading session at $58.20, up 4.3% from the previous day’s closing price of $55.80.
The company’s stock gained 169.3% in the past year, strongly outperforming the Zacks Engineering - R and D Services industry’s 45% growth, the Zacks Construction sector’s 39.5% rise and the S&P 500 Index’s 16.2% increase.
Earnings estimates for 2023 remained stable at $3.52 per share in the past 60 days, suggesting 11.4% year-over-year growth. The positive trend signifies bullish analyst sentiments, indicating robust fundamentals and sparking the expectation of outperformance in the near term.
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This transportation, e-infrastructure and building solutions provider is mainly riding on a record backlog, new high-value e-infrastructure project awards, increased transportation funding and an emerging improvement in housing starts.
The company has been navigating the ongoing supply chain and inflation challenges with growth in its E-Infrastructure Solutions (its largest segment), E-Infrastructure and Building Solutions. Its focus on the execution of strategic objectives also bodes well.
In December 2021, Sterling completed the acquisition of Petillo LLC and its related entities. Petillo is a leading specialty site development solution provider in the Northeast and Mid-Atlantic.
Sterling also acquired Kimes & Stone, which provides diverse services, including soil stabilization for site development on e-commerce projects such as large fulfillment and distribution centers and data centers as well as soil stabilization for roadways and manufacturing plant construction.
Earlier, STRL announced that it would divest its 50% ownership interest in its partnership with Myers & Sons Construction L.P. for $18 million in cash. The divestiture is in line with the strategy of reducing its portfolio of low-bid heavy highway projects to increase margins and focus on strategic geographies.
STRL expects the higher end of its revenue guidance range of $1.9-$2 billion and net income of $104-$110 million. Its earnings is expected within $3.33-$3.53 per share and EBITDA between $220 million and $235 million. The high end of its guidance ranges would offer an improvement in revenues by 13% and a net income of 13.7% from 2022.
Zacks Rank
Currently, STRL carries a Zacks Rank #3 (Hold).
3 Better-Ranked Construction Stocks Hogging the Limelight
Willdan Group, Inc. WLDN is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
Willdan Group presently sports a Zacks Rank #1 (Strong Buy). WLDN’s expected earnings growth rate for 2023 is 39.8%. The consensus mark for WLDN’s 2023 earnings has moved north to $1.23 per share from $1.15 in the past 60 days.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Gates Industrial Corporation plc GTES is a manufacturer of engineered power transmission and fluid power solutions.
GTES currently carries a Zacks Rank #2 (Buy). Its expected earnings growth rate for 2023 is 3.5%. The consensus mark for GTES’ 2023 earnings has moved north to $1.18 per share from $1.17 in the past 60 days.
Howmet Aerospace, Inc. HWM is a global manufacturer of engineered products serving the aerospace, defense and commercial transportation industries. The company is expected to benefit from higher aircraft production rates and ease of supply chains in the transportation market.
Howmet Aerospace currently carries a Zacks Rank #2. HWM’s earnings for 2023 are expected to grow by 20.7%. The consensus mark for HWM’s 2023 earnings has moved north to $1.69 per share from $1.64 in the past 60 days.
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