Granite Construction Incorporated
) reached a new 52-week high of $39.64 on March 19, up from its
previous high of $39.49 on March 18.
The stock closed at $39.26 at the end of trading yesterday, with
a solid one-year return of about 29.7% and year-to-date return of
about 12%, outperforming the S&P 500. The average volume of
shares traded over the last three months was roughly 260K.
Based in Watsonville, CA, the infrastructure contractor and
construction material producer has a market cap of $1.53 billion
and long-term expected earnings growth of 7%.
On Jan 29, Granite Construction reported fourth-quarter 2013
earnings per share of 2 cents, which outperformed the Zacks
Consensus Estimate of a loss of 3 cents per share.
The company's total contract backlog increased to $2.5 billion as
of Dec 31, 2013 from $1.7 billion as of Dec 31, 2012. The rise
was due to addition of the Tappan Zee Bridge project in New York,
the IH-35E highway reconstruction project in Texas, I-40/440
project in North Carolina as well as an overall increase in the
Construction segment backlog.
Granite Construction's backlog at 2013-end reflected a diverse,
healthy portfolio of projects, which bodes well for the future.
In 2014, the company expects to bid on more than $13 billion of
large projects. The company foresees an additional $20 billion in
large projects beyond 2014.
On March 6, Granite Construction won a $36 million road and
bridge project from the Alaska Department of Transportation.
Construction work is scheduled to begin in April 2014 and the
project will likely be complete in late 2015. The company expects
to book the project into backlog during the first quarter of
Furthermore, diversification opportunities underground, both in
power and tunnel, brightens the company's prospects.
Granite Construction currently carries a short-term Zacks Rank #5
Other Stocks to Consider
Some better-ranked stocks in the same industry include
). All of these have a Zacks Rank #2 (Buy).
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