Last Updated: 09 Nov 2024
Executive Summary
Sterling Construction Company Inc. (STRL) is a leading construction company in the United States, specializing in residential, specialty, and heavy civil projects. With a market capitalization of $5.95 billion, the company has a strong financial position and a solid track record of growth. The latest stock price of $193.61 is near its 52-week high, indicating investor confidence in the company's prospects.
Company Overview
Sterling Construction was founded in 1981 and is headquartered in The Woodlands, Texas. The company operates in 18 states and employs over 4,000 people. Its major projects include the construction of hospitals, schools, bridges, and other infrastructure. The company has a strong reputation for quality and safety, and it has received numerous awards for its work.
Fundamental Analysis
Sterling Construction has strong financial fundamentals. The company's revenue has grown steadily in recent years, and it is expected to continue to grow in the future. The company's profit margin is also healthy, and it has a strong cash flow. The company's balance sheet is also strong, with low debt and ample liquidity.
The company's key financial metrics are as follows:
Revenue: $2.10 billion (TTM)
Gross profit: $275 million (TTM)
Net income: $184 million (TTM)
EPS: $6.54 (TTM)
P/E ratio: 29.6
Book value: $23.34
Debt-to-equity ratio: 0.3
Technical Analysis
Sterling Construction's stock price has been trending upward in recent months. The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish sign. The stock's relative strength index (RSI) is also in bullish territory.
Short Term Outlook
In the short term, Sterling Construction's stock price is expected to continue to rise. The company's strong financial performance and positive technical indicators suggest that the stock is undervalued. The stock could reach a target price of $200 in the next few months.
Long Term Outlook
In the long term, Sterling Construction's stock price is expected to continue to grow. The company's strong fundamentals and its position in the growing construction industry suggest that the stock has the potential to outperform the market over the next few years. The stock could reach a target price of $300 in the next five years.
Analyst Recommendations
Analysts are bullish on Sterling Construction's stock. The consensus recommendation is a "buy" rating, with a target price of $179.67. One analyst has a "strong buy" rating on the stock, while one analyst has a "hold" rating.
