From NASDAQ.: 2025-04-21 09:23:00

Shares of Sterling Infrastructure, Inc. STRL are trading above their 50-day SMA, indicating a short-term bullish trend. The company’s E-Infrastructure segment shows promise despite market volatility. Year-to-date, the stock has outperformed its industry and sector. STRL’s focus on high-margin services, data center expansion, and strong backlog support its growth potential.

Sterling’s E-Infrastructure segment, driven by data center expansion, has seen significant growth. The U.S. data center market is projected to reach $164.7 billion by 2030, benefiting STRL. The company’s emphasis on high-margin services and disciplined cost control has improved profitability. With a strong backlog and revenue visibility, Sterling is poised for continued growth.

Sterling’s transportation sector remains a key revenue driver, supported by ongoing infrastructure investments. Despite potential federal budget adjustments, the company’s transportation projects remain stable. However, risks include client capex reductions and rising construction costs due to tariffs on key materials. STRL has consistently surpassed profit estimates and has upward EPS revisions for 2025.

From a valuation perspective, Sterling is currently trading at a discount relative to its industry. The stock’s technical indicators and strong fundamentals suggest a compelling investment opportunity. With a Zacks Rank #1 (Strong Buy), STRL is well-positioned for potential upside. The company’s focus on operational efficiency, margin expansion, and growth drivers like E-Infrastructure support its positive outlook.



Read more at NASDAQ.: STRL Moves Above 50-Day SMA: A Buy for This Infrastructure Stock?