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Granite Construction - AI Stock Analysis

Analysis generated June 16, 2024

Granite Construction Incorporated (NYSE: GVA) is a leading infrastructure provider in the United States. The company engages in the construction and maintenance of various civil infrastructure for public and private sector clients. They offer a wide array of services, including transportation infrastructure, water infrastructure, and other forms of heavy civil construction. With a history rooted in robust project management and execution, Granite Construction has established itself as a formidable player in the construction industry.

Fundamental Analysis

Granite Construction reported revenues of $1.34 billion for the most recent quarter. This represents a decrease of 28.89% compared to the preceding quarter, marking a significant area of concern regarding the company's short-term revenue trends. However, the year-over-year comparison shows a 19.53% increase in revenue, indicating positive progress on an annual basis.

The company's net income for the last quarter was $31 million. This is a decrease of 219.17% compared to the previous quarter, raising red flags regarding the company's profitability in the short term. On a year-over-year basis, net income decreased by 34.57%, which is also worrisome.

Regarding EBITDA, the company reported a figure of $0 for the last quarter. This is a 100.00% decrease compared to the prior quarter, but it shows a 100.00% increase compared to the same quarter last year.

The current Price-to-Earnings (P/E) ratio of Granite Construction stands at 77.86. This is relatively high, signaling potential overvaluation of the stock and suggesting a bearish outlook.

Technical Analysis

Today’s stock price of Granite Construction is $62.29. This represents an increase of 1.14% from a month ago, indicating a short-term positive trend. Over the long term, the stock price has increased by 58.38% compared to a year ago, signifying a robust performance.

The current Simple Moving Average (SMA10) is 60.87, higher than the previous SMA10 of 60.64. This indicates a potential upward trend in price movement.

The Relative Strength Index (RSI) is 51.6, suggesting a neutral condition. The RSI number indicates neither overbought nor oversold conditions, implying a relatively stable outlook for the stock in the immediate future.

Alternative Data Analysis

On the employment front, Granite Construction has 385 open positions according to data from popular job boards. This number is down by 14% in the recent couple of months, indicating the company might be cutting costs or improving its margins. This could be a concerning sign for a growing company.

In terms of customer acquisition, Granite Construction has seen an estimate of 44,000 visitors to their webpage. This figure has increased by 57% over the last few months, signaling a bullish trend as it could indicate an increase in customer interest.

On customer engagement metrics, Granite Construction has 11,000 followers on Instagram, which is up by 4% in the last couple of months. Additionally, the company has 3,500 followers on Twitter, also up by 6% during the same period. These metrics suggest increased interest and engagement in the company's activities.

AltIndex's AI score for Granite Construction is 55, which signifies a hold signal. This score is derived by analyzing fundamental, technical, and alternative data.

Conclusion and Recommendation

Granite Construction presents a mixed bag in terms of stock analysis. Its revenue shows healthy year-over-year growth, but significant declines in net income and EBITDA are areas of concern. The high P/E ratio suggests that the stock might be overvalued. Technically, the stock shows a bullish trend over the long term, although the current indicators such as RSI are neutral. Alternative data indicates some positive signs in customer acquisition and engagement, but the decrease in job openings indicates cost-cutting measures.

Given the combination of these insights, including the hold signal from AltIndex's AI score, the recommendation would be to hold the stock if you own it. It's advisable to monitor the company's financial performance closely in the subsequent quarters to reassess the 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.