STRL Sterling Construction Company Inc

Sterling Infrastructure (STRL) faces housing market weakness, with its Building Solutions segment revenues declining. However, its E-Infrastructure Solutions segment, serving data centers and manufacturing, is experiencing significant growth and now accounts for roughly 60% of total revenues. This strength in E-Infrastructure is expected to offset the ongoing housing drag and support the company's performance into 2026.

Rice Hall James & Associates LLC significantly reduced its stake in Sterling Infrastructure (NASDAQ:STRL) by 34.3% in Q3, now holding 8,934 shares valued at approximately $3.04 million. Despite this, other institutional investors have either increased or initiated positions in the construction company. Sterling Infrastructure recently reported $0.64 EPS on $403.6 million revenue and has authorized a $400 million share buyback, indicating the company's board believes its shares are undervalued.

Sterling Infrastructure, Inc. (STRL) is well-positioned for 2026 due to a robust backlog exceeding $4 billion, driven by sustained public and private investment in infrastructure, especially E-Infrastructure projects. Easing financial conditions and rate cuts by the Federal Reserve further support long-term capital projects, enhancing the company's operational visibility and execution capabilities. STRL has significantly outperformed industry peers, with its shares surging 37.7% in six months and earnings estimates for 2026 increasing to $11.95 per share, earning it a Zacks Rank #1 (Strong Buy).

Sterling Infrastructure, Inc. is well-positioned for strong execution into 2026, benefiting from a substantial and diversified project backlog exceeding $4 billion. The company operates within a supportive U.S. infrastructure construction market, reinforced by easing financial conditions and increased demand for mission-critical developments. With a Zacks Rank #1 (Strong Buy) and estimated earnings growth of 14.6% for 2026, Sterling's stock has significantly outperformed its industry peers.

Sterling Infrastructure (STRL) has been a highly searched stock on Zacks.com. Despite a recent -5.1% return compared to the S&P 500's +4.7%, the company holds a strong Zacks Rank #1 (Strong Buy) due to favorable earnings estimate revisions. Investors are encouraged to examine its earnings growth, revenue forecasts, and valuation to determine its investment potential.

Osaic Holdings Inc. significantly increased its stake in Sterling Infrastructure, Inc. (NASDAQ:STRL) by 135.2% during the second quarter, now holding 27,402 shares valued at $6.32 million. Other institutional investors also added to their positions, with institutional ownership now at 80.95%. Sterling Infrastructure has received a consensus "Buy" rating from analysts with a target price of $460.00, following strong earnings results and a board-authorized $400 million share repurchase plan.