The IBD SmartSelect Composite Rating for Sterling Construction ( STRL ) increased from 94 to 96 Thursday.
[ibd-display-video id=2881825 width=50 float=left autostart=true] The new rating shows the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. The top-performing stocks tend to have a 95 or better grade as they launch a significant move.
Sterling Construction is currently extended beyond a proper buy zone after clearing the 15.03 entry in a cup without handle. Note that it is a thinly traded stock, with average daily dollar volume under $8 million.
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One weak spot is the company's 77 EPS Rating, which tracks quarterly and annual earnings growth. Look for that to improve to 80 or better to show it's in the top 20% of all stocks.
Its Accumulation/Distribution Rating of A shows heavy buying by institutional investors over the last 13 weeks.
In Q3, the company posted 160% earnings-per-share growth. Sales growth increased 48%, up from 30% in the prior quarter. That marks three consecutive reports with increasing revenue gains.
Sterling Construction holds the No. 1 rank among its peers in the Building-Heavy Construction industry group. Granite Construction ( GVA ) and Mastec ( MTZ ) are also among the group's highest-rated stocks.
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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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
