Core Points - Great Lakes Dredge & Dock Corporation has amended its Revolving Credit Facility, increasing it by $100 million to a total of $430 million and extending the maturity to October 2030 [1][2] - The company used the increased capacity to fully repay $100 million in second lien notes issued in 2024, resulting in significant interest savings [2][3] - The CFO highlighted that this amendment allows for an estimated annual interest saving of $6 million, with no debt maturities until 2029 and a weighted average interest rate below 6% [3] Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S. and has a long history of significant international projects [4] - The company is expanding its core business into the offshore energy industry and operates a diverse fleet of approximately 200 specialized vessels [4] - Great Lakes has a strong safety culture, emphasizing employee safety through its Incident-and Injury-Free® (IIF®) safety management program [4]

Core Viewpoint - Great Lakes Dredge & Dock (GLDD) is experiencing mixed performance in the stock market, with a recent increase in stock price but a decline over the past month, while upcoming earnings are anticipated to show significant growth in earnings per share and revenue [1][2][3][4]. Company Performance - GLDD's stock closed at $11.15, reflecting a gain of 1.73% from the previous trading session, outperforming the S&P 500's daily gain of 0.79% [1]. - Over the past month, GLDD shares have depreciated by 6.8%, underperforming the Construction sector's loss of 0.94% and the S&P 500's gain of 1.27% [2]. Earnings Expectations - Analysts expect GLDD to report earnings of $0.17 per share, indicating a year-over-year growth of 30.77% [3]. - The Zacks Consensus Estimate for revenue is projected at $197.6 million, which represents a 3.36% increase from the previous year [3]. - For the entire year, earnings are forecasted at $1.02 per share and revenue at $831.51 million, reflecting changes of +21.43% and +9.02%, respectively, compared to the previous year [4]. Analyst Forecasts - Recent revisions to analyst forecasts for GLDD are crucial as they often indicate changing business trends, with positive revisions seen as a favorable sign for the business outlook [5]. - The Zacks Rank system, which incorporates estimate changes, currently ranks GLDD at 3 (Hold) [7]. Valuation Metrics - GLDD is trading with a Forward P/E ratio of 10.78, which is a discount compared to the industry average Forward P/E of 26.8 [8]. - The company has a PEG ratio of 0.9, significantly lower than the average PEG ratio of 2.06 for the Building Products - Heavy Construction industry [9]. Industry Context - The Building Products - Heavy Construction industry is part of the Construction sector and holds a Zacks Industry Rank of 98, placing it in the top 40% of over 250 industries [10].

Core Insights - Wall Street analysts' recommendations significantly influence investors' decisions regarding stock transactions, particularly for Great Lakes Dredge & Dock (GLDD) [1][5] - The average brokerage recommendation (ABR) for GLDD is 1.50, indicating a consensus leaning towards a "Buy" rating, with 75% of the recommendations classified as "Strong Buy" [2][5] Brokerage Recommendation Trends - The ABR of 1.50 is derived from four brokerage firms, with three firms issuing "Strong Buy" ratings [2] - Despite the positive ABR, reliance solely on brokerage recommendations may not yield optimal investment decisions, as studies indicate limited success in guiding investors towards high-potential stocks [5][10] Analyst Bias and Limitations - Analysts from brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of "Strong Buy" recommendations compared to "Strong Sell" [6][10] - This misalignment of interests suggests that brokerage recommendations may not accurately reflect future stock price movements [7][10] Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks based on earnings estimate revisions and has shown a strong correlation with near-term stock price movements [8][11] - The Zacks Rank is distinct from ABR, as it is based on quantitative models rather than solely on brokerage recommendations, providing a more balanced assessment of stock performance [9][12] Current Earnings Estimates for GLDD - The Zacks Consensus Estimate for GLDD's current year earnings remains unchanged at $1.02, indicating stable analyst views on the company's earnings prospects [13] - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for GLDD, suggesting a cautious approach despite the positive ABR [14]

Core Insights - Great Lakes Dredge & Dock Corporation (GLDD) has received seven new work awards totaling approximately $134 million, enhancing its revenue visibility through 2026 [1][2][3] Group 1: New Work Awards - The new awards include a significant $27.9 million maintenance project for the Mississippi River, which is federally funded and involves dredging for marsh development [3] - All seven projects were awarded in Q3 2025, contributing to the company's dredging backlog for 2025 [2][3] Group 2: Operational Stability - The company's operations are unaffected by the current government shutdown, as all projects in the backlog are fully funded [2] Group 3: Company Overview - Great Lakes Dredge & Dock Corporation specializes in dredging services in the US, including capital dredging for port expansions, coastal restoration, and land reclamation [4]

Core Insights - Great Lakes Dredge & Dock (GLDD) stock closed at $11.18, reflecting a -1.5% change from the previous day, which is less than the S&P 500's daily loss of 0.63% [1] - The company is expected to report an EPS of $0.17, representing a 30.77% increase year-over-year, with a revenue forecast of $197.6 million, indicating a 3.36% growth compared to the same quarter last year [2] - For the annual period, earnings are anticipated to be $1.02 per share and revenue at $831.51 million, showing increases of +21.43% and +9.02% respectively from the previous year [3] Company Performance and Estimates - Recent changes in analyst estimates for Great Lakes Dredge & Dock reflect evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Great Lakes Dredge & Dock at a rank of 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged [5] Valuation Metrics - Great Lakes Dredge & Dock is trading at a Forward P/E ratio of 11.16, which is a discount compared to the industry average Forward P/E of 27.19 [6] - The company has a PEG ratio of 0.93, significantly lower than the industry average PEG ratio of 2.04 [6] Industry Context - The Building Products - Heavy Construction industry, which includes Great Lakes Dredge & Dock, ranks in the top 11% of all industries according to the Zacks Industry Rank [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Market Overview - The S&P 500 dropped 0.28% to 6,735.11, the Nasdaq slipped 0.08% to 23,024.63, and the Dow fell 243.36 points, or 0.52%, closing at 46,358.42 due to concerns over the ongoing U.S. government shutdown [1] - Investors are closely monitoring the potential impacts of the shutdown on economic activity and corporate results, leading to a cautious market sentiment [1] Value Investing Insights - The Price to Cash Flow (P/CF) ratio is highlighted as an effective valuation metric for assessing value stocks, with a lower P/CF indicating better value and strong cash generation potential [2][3] - Analysts emphasize that cash flow is a more reliable indicator of a company's financial health compared to earnings, which can be subject to manipulation [4] Selection Criteria for Value Stocks - Parameters for selecting true-value stocks include: - P/CF less than or equal to the industry median - Price greater than or equal to $5 - Average 20-Day Volume greater than 100,000 - P/E using (F1) less than or equal to the industry median [7][8] - Additional metrics include P/B, P/S, PEG ratios, and Zacks Rank to avoid value traps and identify stocks with strong upside potential [6][10] Featured Value Stocks - StoneCo Ltd. (STNE) has a trailing four-quarter earnings surprise of 11.5% and a Value Score of B, with expected sales and EPS growth of 9.8% and 20% respectively [12][11] - Integer Holdings Corporation (ITGR) has a trailing four-quarter earnings surprise of 1.3% and a Value Score of B, with expected sales and EPS growth of 7.8% and 20.4% respectively [13][12] - Universal Health Services, Inc. (UHS) has a trailing four-quarter earnings surprise of 9.4% and a Value Score of A, with expected sales and EPS growth of 8.5% and 23% respectively [15][14] - Great Lakes Dredge & Dock Corporation (GLDD) has a trailing four-quarter earnings surprise of 45.3% and a Value Score of A, with expected sales and EPS growth of 9% and 21.4% respectively [16][15]

Core Viewpoint - Great Lakes Dredge & Dock Corporation has received seven work awards totaling over $130 million, enhancing its project backlog and revenue visibility through 2026 [1][9]. Project Summaries - The Mississippi River project involves dredging maintenance material to support marsh development, with a contract value of $27.9 million [1][8]. - The SAD Regional Harbor Dredging project focuses on maintenance dredging of navigation channels in North Carolina, valued at $26.9 million [2][8]. - The Baltimore Harbor project entails dredging near Chesapeake Bay, with a contract worth $25.5 million [3][8]. - The Delray Beach Renourishment project involves dredging near shore to deposit material on the beach, valued at $19.2 million [4][8]. - The East Rockaway Inlet project includes maintenance dredging with sand disposal to Rockaway Beach, worth $14.0 million [5][8]. - The McLellan-Kerr Arkansas River project aims to restore navigation channels, with a contract value of $11.7 million [6][8]. - The Indian River Inlet project involves dredging to construct a beach berm and dune system, valued at $8.7 million [7][8]. Company Overview - Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the U.S., with a history of completing significant international projects [10]. - The company operates a diverse fleet of approximately 200 specialized vessels and has a disciplined training program for engineers [10]. - Great Lakes emphasizes safety through its Incident-and Injury-Free® (IIF®) safety management program, integrated into its corporate culture [10].

Core Insights - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Great Lakes Dredge & Dock (GLDD) Analysis - GLDD has shown a price increase of 2.2% over the past four weeks, indicating growing investor interest [3] - The stock gained 0.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - GLDD has a beta of 1.34, suggesting it moves 34% higher than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - GLDD has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has earned a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investors [6] - GLDD is trading at a Price-to-Sales ratio of 0.98, indicating it is reasonably valued at 98 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides GLDD, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]

Core Insights - Three stocks are highlighted with strong growth characteristics and buy ranks for investors to consider: Montrose Environmental Group, Micron Technology, and Great Lakes Dredge & Dock Montrose Environmental Group (MEG) - Provides environmental services primarily in the United States - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 100% over the last 60 days - PEG ratio is 1.13 compared to the industry average of 5.11 - Possesses a Growth Score of A [1][2] Micron Technology (MU) - A leading global provider of semiconductor memory solutions - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 35.1% over the last 60 days - PEG ratio is 0.33 compared to the industry average of 1.43 - Possesses a Growth Score of A [2][3] Great Lakes Dredge & Dock (GLDD) - Largest provider of dredging services in the US, focusing on maintaining and deepening shipping channels, land reclamation, and coastline renourishment - Holds a Zacks Rank of 1 (Strong Buy) - Zacks Consensus Estimate for current year earnings has increased by 6.3% over the last 60 days - PEG ratio is 0.97 compared to the industry average of 5.42 - Possesses a Growth Score of B [3][4]

Core Insights - The recent rate cut by the Fed has led to increased optimism on Wall Street, with investors favoring profitable companies, although even profitable firms can face bankruptcy if cash flow is inconsistent [1][3] Cash Flow Importance - A company's resilience can be effectively assessed by its cash flow generation efficiency, which protects against market volatility and indicates proper profit allocation [2][3] - Healthy cash flow is crucial for a company's survival, growth, and success, providing flexibility for business decisions and investments [3][5] Cash Flow Analysis - Net cash flow is a key metric to determine how much actual money a company generates, as cash flows in and out of the business [4] - Positive cash flow signifies an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow indicates declining liquidity [5] Growth and Management Efficiency - Positive cash flow alone does not guarantee future growth; increasing cash flow is essential as it reflects management's efficiency and reduces reliance on external financing [6] Screening Parameters for Stocks - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average, indicating a positive trend [7] - Additional criteria included Zacks Rank 1, average broker rating of 1, current price of at least $5, and a VGM Score of B or better [8] Stock Recommendations - Century Aluminum Company (CENX) has seen an 11.7% increase in earnings estimates with a VGM Score of A [9][10] - Daktronics, Inc. (DAKT) has a 6.9% rise in fiscal 2026 earnings estimates and a VGM Score of B [9][11] - Great Lakes Dredge & Dock Corporation (GLDD) has a 6.3% upward revision in 2025 earnings estimates with a VGM Score of B [9][12] - NCS Multistage Holdings, Inc. (NCSM) has a significant 62% improvement in earnings outlook with a VGM Score of A [9][13]