Shares of Sterling Infrastructure, Inc. (STRL) have soared 47.2% year to date (YTD), significantly outpacing the 21% gain in the Zacks Engineering - R and D Services industry. Additionally, STRL's sector has increased 9.9%, while the S&P 500 has risen 16.9% in the same period. Over the past three years, Sterling's shares have delivered an astonishing total return of 520.9% compared with the S&P 500's modest return of 30.2%. STRL Trades Above 200-Day SMA Additionally, STRL pursues growth through acquisitions ...

Company Overview - Sterling Infrastructure (NASDAQ:STRL) is a specialized construction and engineering company operating in three verticals: e-infrastructure, transportation, and building solutions [2] - The e-infrastructure segment is the largest and fastest growing, generating 48% of total sales, while the transportation segment accounts for 32% of sales with lower operating margins of 6.6% [16] - The building solutions segment, although the smallest at 20% of revenues, is growing with good operating margins of 11.4% [3] Financial Performance - Over the last twenty years, the company has achieved compound annual growth rates (CAGRs) in revenue and EBITDA of 13.8% and 15.4%, respectively [6] - In the last five years, revenue and EBITDA have compounded at rates of 13.7% and 33.9%, respectively [6] - The company's operating cash flow has nearly doubled every two years, providing flexibility for growth investments [7] Growth Opportunities - The global smart infrastructure market is projected to grow at a 23.1% CAGR, reaching nearly $1 trillion by 2032, driven by increased demand for e-infrastructure [21] - The company's backlog of projects totaled $961 million, a 32% increase compared to Q1'23, with data centers contributing significantly to this growth [21] - Management is guiding for FY'24 revenue of $2.125 to $2.215 billion and EBITDA of $285 to $300 million, indicating expectations for continued margin expansion [22] Capital Allocation - Sterling Infrastructure focuses on organic growth initiatives, M&A, and share buybacks, with a preference for margin-accretive deals [23] - The company has a strong balance sheet with cash exceeding total debt, allowing for potential leverage up to 2.5x if opportunities arise [23] Valuation - The company's shares have more than doubled over the past year, with a current EV/EBITDA multiple of 11.2x, which is significantly higher than the 6.0x multiple before 2023 [24][25] - Despite the recent rise in share price, the company is seen as having a favorable valuation given its growth prospects and business mix shift towards higher-margin e-infrastructure [13][25]

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Sterling Infrastructure currently has a Zacks Rank of #2 (Buy). The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the averag ...

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Sterling Infrastructure is currently a Zacks Rank #2 (Buy). The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the ...

Market participants will be closely following the financial results of Sterling Infrastructure in its upcoming release. The company's upcoming EPS is projected at $1.47, signifying a 15.75% increase compared to the same quarter of the previous year. In terms of valuation, Sterling Infrastructure is presently being traded at a Forward P/E ratio of 22.29. This signifies a premium in comparison to the average Forward P/E of 19.79 for its industry. The latest trading session saw Sterling Infrastructure (STRL) e ...

The upcoming earnings release of Sterling Infrastructure will be of great interest to investors. The company is predicted to post an EPS of $1.47, indicating a 15.75% growth compared to the equivalent quarter last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Sterling Infrastructure. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable out ...

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Sterling Infrastructure (STRL) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question. Sterling Infrastructure is a member of the Construction sector. This group includes 94 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Secto ...

Coming into today, shares of the civil construction company had lost 10.31% in the past month. In that same time, the Construction sector lost 4.64%, while the S&P 500 gained 2.85%. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.13 per share and a revenue of $2.2 billion, representing changes of +14.77% and +11.68%, respectively, from the prior year. Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage ...

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Earnings Estimate Revisions Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair ...

THE WOODLANDS, Texas, May 30, 2024 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) ("Sterling" or "the Company") today announced that management is participating in the following investor conferences: Stifel 2024 Cross Sector Insight Conference Date: June 4, 2024 Company presentation is scheduled at 8:35-9:05 am ET Webcast: https://wsw.com/webcast/stifel89/strl/2138808 William Blair 44th Annual Growth Stock Conference Noelle Dilts, VP of Investor Relations and Corporate Strategy 281-214-0795 ...