Sterling Infrastructure, Inc. (STRL) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - Sterling Infrastructure (STRL) has shown significant stock performance, with a 23.2% increase over the past month and a 120.2% rise since the beginning of the year, outperforming both the Zacks Construction sector and the Zacks Engineering - R and D Services industry [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $1.97 against a consensus estimate of$1.68 in its latest earnings report [2] - For the current fiscal year, Sterling Infrastructure is projected to achieve earnings of $5.96 per share on revenues of$2.16 billion, reflecting a 33.33% increase in EPS and a 9.69% increase in revenues [3] - The next fiscal year forecasts an EPS of $6.11 per share on revenues of$2.33 billion, indicating year-over-year changes of 2.52% in EPS and 7.74% in revenues [3] Valuation Metrics - The stock currently trades at a valuation of 32.5 times the current fiscal year EPS estimates, which is higher than the peer industry average of 23.3 times [7] - On a trailing cash flow basis, the stock trades at 30.1 times compared to the peer group's average of 17.9 times [7] - The PEG ratio stands at 2.17, suggesting that the company is not positioned among the top value stocks [7] Zacks Rank and Style Scores - Sterling Infrastructure holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates [8] - The stock has a Value Score of D, a Growth Score of A, and a Momentum Score of F, resulting in a combined VGM Score of B [6][9] - The combination of a strong Zacks Rank and acceptable Style Scores indicates potential for the stock in the near future [9]