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Sterling Infrastructure - AI Stock Analysis

Analysis generated January 31, 2025

Sterling Infrastructure is a diversified heavy civil construction company operating since 1955. Known for their involvement in large-scale infrastructure projects including transportation, water, and waste management sectors, Sterling has consistently positioned itself as a key player in the industry. Their projects range from highways and bridges to environmental rehabilitation. The company operates primarily in the United States, striving to deliver innovative infrastructure solutions that promote sustainability and efficiency.

Fundamental Analysis

In the latest quarter, Sterling Infrastructure reported a revenue of $594 million. This represents a sequential growth of 1.87% and a year-over-year growth of 6.06%. These growth rates suggest steady performance and resilience in the market.

Net income for the last quarter was $61 million, marking an 18.20% increase from the previous quarter and an impressive 55.82% rise compared to the same quarter last year. Such substantial growth in net income indicates improved profitability and efficiency.

The company's EBITDA reached $89 million for the last quarter, up by 19.92% quarter-over-quarter and 55.29% year-over-year. This signifies robust earnings and strong operational performance. The current Price-to-Earnings (P/E) ratio stands at 23.92, positioned within a normal range, neither too high nor too low, suggesting the stock might be fairly valued.

Technical Analysis

The current stock price for Sterling Infrastructure is $146.71. Despite a notable decrease of 12.91% over the past month, there is an impressive increase of 87.23% over the past year, indicating a strong long-term upward trend. However, short-term indicators are showing bearish signals.

The Simple Moving Average (SMA10) is currently 167.63, lower than the previous SMA10 of 172.61. This suggests a potential downward momentum in the short term. The Relative Strength Index (RSI) is 66.3, which points to a neutral condition and suggests neither overbought nor oversold territory.

Alternative Data Analysis

Sterling Infrastructure currently has 11 open job positions, a number that has remained steady in the past few months. This stable level of hiring activity suggests a readiness for growth without overextending resources. According to employee sentiment data, the business outlook is neutral, indicating neither significant optimism nor pessimism among the workforce.

The company's website traffic is estimated at around 8,000 visitors, which has decreased by 27% recently. This declining trend in web traffic could be a red flag for fading customer interest or engagement. However, on a more positive note, their Instagram page has grown to 660 followers, a 4% increase, reflecting heightened social media interest.

Furthermore, Sterling Infrastructure has received an AltIndex AI score of 71, categorizing it as a buy signal. This AI score is derived from a blend of fundamental, technical, and alternative data insights, reflecting a positive outlook for the company's stock.

Conclusion

In conclusion, Sterling Infrastructure exhibits strong fundamental indicators with solid year-over-year and quarter-over-quarter growth in revenue, net income, and EBITDA. While the technical analysis reveals some short-term bearish trends, the long-term outlook remains positive. The alternative data provides a mixed view, with stagnant job postings and declining web traffic balanced by a growing social media presence and a positive AI score indicating a buy signal.

Based on this comprehensive analysis, Sterling Infrastructure's stock shows promise for long-term growth despite some short-term volatility. It would be prudent for investors to consider current market conditions and potential risks before making an investment decision.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.