On Jul 6, 2013, we upgraded
Orion Marine Group, Inc (
to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Most earnings estimates have been revised upwards for Orion in
recent days. The company has been reporting positive surprises in
all the last four quarters with an average estimate of 89.70%. In
the last reported quarter the company reported strong earnings,
beating the Zacks Consensus Estimate by more than 40%.
demand for the company's suite of marine infrastructure solutions
has helped boost the revenue. Orion expects this demand to
continue going forward, particularly from the private sector as
exemplified with a contract award of around $20 million in the
Gulf Coast region. The scope of the contract primarily involves
constructing and dredging a new ship dock for a private client in
Orion is believed to have one of the strongest lines of
dredging equipments in the industry. Some of Orion's main
customers include the U.S. Marine Transportation System and the
cruise industry. Orion is positive about its dredging activity in
2013, as the expected increases in cargo volume and future
demands from larger ships transiting the Panama Canal will
require the services of ports along the Gulf Coast and Atlantic
seaboard. This requirement will lead to additional dredging
services and expanded port infrastructure. Therefore, Orion is
continuing to invest heavily in dredging and dredging equipment,
which comprised 64.3% of the total property and equipment value
Other Stocks to consider
Orion provides a broad range of marine construction and
specialty services on, over and under the water along the Gulf
Coast, the Atlantic seaboard and the Caribbean Basin. The company
acts as a single source turnkey solution for its customers'
marine contracting needs. With robust growth factors, we believe
Orion has rightly been upgraded to Strong Buy. However there are
also other stocks from the same sector that are worth a look.
Dycom Industries Inc. (
with a Zacks Rank #1 (Strong Buy), while
Chicago Bridge & Iron Company N.V. (
EMCOR Group Inc. (
both have Zacks Rank #2 (Buy).
CHICAGO BRIDGE (CBI): Free Stock Analysis
DYCOM INDS (DY): Free Stock Analysis Report
EMCOR GROUP INC (EME): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
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