Great Lakes Dredge & Dock Surpasses Market Trends with Strong Momentum
Great Lakes Dredge & Dock (GLDD) closed yesterday at $11.53, marking a +0.61% increase from the previous day. This performance outpaced the S&P 500, which dropped by 0.76%, and the Dow, down 0.75%. The tech-heavy Nasdaq was also affected, losing 1.01%.
Strong Monthly Gains Ahead of Earnings Announcement
In the months leading up to this trading session, shares of Great Lakes Dredge & Dock rose 16.94%. This performance significantly outperformed the Construction sector, which saw a gain of 2.69%, as well as the S&P 500’s increase of 4.31% during the same period.
Anticipated Earnings Report and Growth Forecast
Great Lakes Dredge & Dock will soon disclose its earnings, with expectations of an EPS of $0.18, reflecting an impressive 300% increase compared to the same quarter last year. Additionally, analysts forecast revenue to reach $180.8 million, indicating a substantial 54.28% growth from the previous year.
Looking at the full year, Zacks Consensus Estimates predict earnings of $0.80 per share and revenue of $749.53 million, which represent remarkable growths of +471.43% and +27.12%, respectively, from last year.
Analyst Sentiments and Stock Performance Insights
Investors should monitor any recent updates on analyst estimates for Great Lakes Dredge & Dock. These adjustments often reflect evolving short-term business trends. Upward revisions signal analyst confidence in the company’s operational capabilities and profitability.
Research indicates that changes in estimates correlate with forthcoming stock performance. In response, Zacks developed the Zacks Rank system to leverage these insights, providing an actionable rating model for investors.
The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 ranked stocks have outperformed the overall market, achieving an average annual return of +25% since 1988. Currently, Great Lakes Dredge & Dock has a Zacks Rank of #3 (Hold).
Valuation Metrics Highlight Potential Advantage
For valuation, Great Lakes Dredge & Dock presents a Forward P/E ratio of 14.32, which stands in contrast to the industry average of 20.81. This suggests that the stock may be undervalued relative to its peers.
Additionally, GLDD holds a PEG ratio of 0.41, a metric that compares the price-to-earnings ratio with expected earnings growth rates. This is notably lower than the Building Products – Heavy Construction industry’s average PEG ratio of 2.19 as of yesterday’s trading.
Industry Positioning and Performance Outlook
The Building Products – Heavy Construction industry falls within the broader Construction sector, presently ranked 155th in the Zacks Industry Rank. This ranking places it in the bottom 39% of over 250 industries. Such categorization indicates potential challenges, as industries in the top half typically outperform the lower half by a two-to-one margin.
For ongoing insights into stock-impacting metrics, investors are encouraged to utilize Zacks.com in the upcoming trading sessions.
Investing in America’s Infrastructure Future
A significant initiative to modernize the failing infrastructure of the U.S. is on the horizon. This bipartisan effort is urgent and is expected to incur trillions in spending, creating considerable investment opportunities.
The critical question for investors is whether they will identify the right stocks early as their growth potential peaks.
Zacks has prepared a Special Report to assist with this process—available for free. It reveals five key companies poised to benefit from extensive construction and repairs to roads, bridges, and buildings, alongside advancements in cargo transport and energy transformation.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
Interested in the latest investment suggestions from Zacks Investment Research? You can download insights into “5 Stocks Set to Double,” available at no cost.
Great Lakes Dredge & Dock Corporation (GLDD): Free Stock Analysis Report.
To read this article on Zacks.com, click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
