Sterling Infrastructure, Inc. (STRL) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Sterling Infrastructure (STRL) has shown significant stock performance, with a 17.5% increase over the past month and a 53.5% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Engineering - R and D Services industry [1][2]. Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.67 against a consensus estimate of$1.43 in its last earnings report [2]. - For the current fiscal year, Sterling Infrastructure is projected to achieve earnings of $5.66 per share on revenues of$2.16 billion, reflecting a 26.62% increase in EPS and a 9.69% increase in revenues [3]. - The forecast for the next fiscal year indicates expected earnings of $6.02 per share on$2.33 billion in revenues, representing year-over-year changes of 6.45% and 7.74%, respectively [3]. Valuation Metrics - The stock currently trades at a valuation of 23.9X current fiscal year EPS estimates, which is above the peer industry average of 21.7X [7]. - On a trailing cash flow basis, the stock trades at 21X compared to the peer group's average of 16.4X, with a PEG ratio of 1.59 [7]. - The company holds a Value Score of B, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6]. Zacks Rank - Sterling Infrastructure has a Zacks Rank of 2 (Buy), supported by rising earnings estimates [8]. - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, indicating potential for further gains [9].