Granite (GVA) Wins $36M Contract From Caltrans, Boosts CAP

Granite Construction Incorporated GVA is all set to rehabilitate pavement along Highway 162 in Mendocino County with a $36 million contract received from the California Department of Transportation (Caltrans).

Per the deal, Granite will furnish and place 150,000 tons of conventional and rubberized hot mix asphalt to rebuild the structural section of the roadway. This will improve 25 miles of roadway that connect to the Covelo-Round Valley area. The rubberized surface course will use recycled tires and provide a smooth, quiet, and safe driving surface.

Project funding, which comes from both federal funds and the California Senate Bill (SB1), has been included in GVA’s first-quarter Committed and Awarded Projects (CAP). The work is expected to begin in June and is likely to be completed in September 2025.

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Shares of GVA soared 67.9% in the past year compared with the Zacks Building Products - Heavy Construction industry’s 71.7% growth.

Solid CAP Synergies

The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.

The performance of Granite’s operating segments showcased strong market growth in first-quarter 2024, which benefited from a robust public funding environment. CAP increased to $5.5 billion in the first quarter, implying a year-over-year increase from $5.1 billion as of Mar 31, 2023. Both public and private markets continued to be strong. GVA expects substantial opportunities to build CAP in the second quarter and the rest of 2024.

Earnings estimates for 2024 have moved up by 47 cents in the past 30 days, indicating 51.6% year-over-year growth.

Zacks Rank & Other Key Picks

Granite currently sports a Zacks Rank #1 (Strong Buy).

Here are some other top-ranked stocks from the Zacks Construction sector:

M-tron Industries, Inc. MPTI currently sports a Zacks Rank #1. MPTI delivered a trailing four-quarter earnings surprise of 26.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MPTI’s 2024 sales and EPS indicates growth of 8.8% and 58.6%, respectively, from the previous year.

EMCOR Group, Inc. EME presently flaunts a Zacks Rank #1. It has a trailing four-quarter earnings surprise of 32%, on average.

The Zacks Consensus Estimate for EME’s 2024 EPS indicates an improvement of 20.7% from the prior-year levels.

Dycom Industries, Inc. DY carries a Zacks Rank #2 (Buy) at present. It delivered a trailing four-quarter earnings surprise of 53.9%, on average.

The Zacks Consensus Estimate for DY’s fiscal 2025 sales indicates a rise of 7.6% year over year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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