Granite Construction Incorporated GVA recently announced a win with the Utah Department of Transportation (“UDOT”), securing a $65 million contract for Phase 2 of the SR-30 Improvement Project in Logan, UT. This deal builds on Granite's successful completion of Phase 1 in 2023, positioning the company as the preferred low bidder for the next phase of the project.
GVA stock gained 0.7% during the trading session on Sept. 10.
Boost to Granite’s Stock Value
This contract, funded by UDOT and federal sources, underscores Granite's robust portfolio, as it was included in the company’s second-quarter CAP. Such large-scale infrastructure projects play a crucial role in driving revenues, creating a stable pipeline for the company’s construction teams through late 2024 and most of the 2025 season. For investors, this project marks a strategic boost, aligning with Granite’s growth and market expansion plans.
Key Project Highlights
Phase 2 of the SR-30 project will significantly enhance the local infrastructure, featuring a 12-foot-wide multi-use path, wider shoulders, turning lanes, and improved safety features like advanced warning signs for railroad crossings. Additionally, the project will accommodate environmental needs with two new precast box culverts and the widening of a bridge to support the Logan River/Cutler Marsh area.
Long-Term Outlook of GVA
Granite's ongoing collaboration with UDOT strengthens its presence in the Utah region, offering long-term growth prospects. With a project completion date set for December 2025, this contract will help Granite maintain a steady operational cadence while showcasing its capabilities in delivering critical infrastructure improvements.
Granite’s strategic positioning with this contract bodes well for its stock, potentially driving future gains for shareholders.
GVA's Share Price Performance
Shares of GVA soared 34% in the past six months, outperforming the Zacks Building Products - Heavy Construction industry’s 15.9% rise. Earnings per share (EPS) estimates for 2024 have moved up to $5.24 from $4.76 in the past 60 days. The estimated figure indicates 66.9% year-over-year growth. The company’s EPS topped analysts’ expectations in three of the past four quarters, with an average of 26.4%.
Image Source: Zacks Investment Research
GVA has been consistently receiving contracts on the back of its solid execution efforts (read more: Granite Wins $45M Contract From Caltrans, GVA Stock Jumps).
Also, it has been diversifying and expanding its business through acquisitions and investments. Recently, it announced the acquisition of Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt, and highway construction company serving Central and Southern Mississippi. This bolt-on buyout is highly complementary to GVA’s prior acquisition of Lehman-Roberts Company and Memphis Stone & Gravel (LRC and MSG). (Read more: Granite Acquires D&B, Expands Footprint in Southeast).
GVA’s Zacks Rank
Granite currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Some other top-ranked stocks in the construction sector have been discussed below:
EMCOR Group, Inc. EME presently flaunts a Zacks Rank #1 (Strong Buy). It has a trailing four-quarter earnings surprise of 36.5%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for EME’s 2024 EPS indicates an improvement of 46.2% from the prior-year levels.
Great Lakes Dredge & Dock GLDD, a Zacks Rank #2 company, is the largest provider of dredging services in the United States. It has a trailing four-quarter earnings surprise of 215.3%, on average.
The consensus estimate for GLDD’s 2024 EPS is expected to climb 471.4% year over year. The estimated figure moved up to 80 cents from 72 cents over the past 60 days.
MasTec, Inc. MTZ currently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 19.4%, on average.
The consensus estimate for MTZ’s 2024 EPS is expected to rise 53.3% year over year. The estimated figure moved up to $3.02 from $2.94 over the past 60 days.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpEMCOR Group, Inc. (EME) : Free Stock Analysis Report
Great Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis Report
MasTec, Inc. (MTZ) : Free Stock Analysis Report
Granite Construction Incorporated (GVA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
