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Sterling Infrastructure Soars 2.35% on Strong Q1 Earnings

Mover TrackerThursday, May 8, 2025 6:55 pm ET

2min read

Sterling (STRL) experienced a slight decline of 0.13% today, but the share price rose to its highest level since January 2025, with an intraday gain of 2.35%.

The strategy of buying STRL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This suggests a defensive approach, as the strategy largely avoided the downturns in 2022 and 2023 while capturing some of the subsequent recoveries.

DA Davidson has maintained a Buy rating on Sterling Construction and raised the price target to $205 from $185, indicating positive analyst sentiment and potential growth expectations. This move suggests that analysts are optimistic about the company's future prospects, which could have contributed to the recent upward movement in the stock price.

Sterling Infrastructure reported better-than-expected earnings and revenue for the first quarter of 2025. The company's earnings per share (EPS) was $1.29, surpassing analyst estimates by 8.0%, and revenue exceeded expectations by 5.4%. This positive financial performance could have contributed to the stock's appreciation, as investors reacted favorably to the strong quarterly results.

The company has shown significant improvement in profit margins, with net income up 27% from the previous year. This suggests enhanced operational efficiency and profitability, which are key factors that investors look for when evaluating a company's long-term potential. The improvement in profit margins indicates that Sterling Infrastructure is effectively managing its costs and generating higher returns on its investments.

Sterling Infrastructure's shares have increased by 15% over the past week, which may reflect investor confidence following the strong quarterly results and raised price target. This recent performance indicates that investors are bullish on the company's prospects and are willing to invest in its stock, driving up the share price.

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