Sterling Construction Company Inc. Stock Downgraded (STRL)
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Construction & Engineering industry. The net income has significantly decreased by 565.4% when compared to the same quarter one year ago, falling from $9.37 million to -$43.62 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Construction & Engineering industry and the overall market, STERLING CONSTRUCTION CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for STERLING CONSTRUCTION CO INC is currently extremely low, coming in at 7.40%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -38.30% is significantly below that of the industry average.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.39%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 603.70% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- STERLING CONSTRUCTION CO INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STERLING CONSTRUCTION CO INC swung to a loss, reporting -$2.26 versus $1.12 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus -$2.26).
-- Written by a member of TheStreet Ratings Staff
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.