Great Lakes Dredge & Dock (gldd) Exceeds Market Returns: Some Facts To Consider

The most recent trading session ended with Great Lakes Dredge & Dock (GLDD) standing at $7.92, reflecting a +1.8% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.49%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq appreciated by 1.22%.

Shares of the provider of dredging and dock-contracting services witnessed a loss of 31.93% over the previous month, trailing the performance of the Construction sector with its loss of 9.25% and the S&P 500's loss of 8.15%.

The investment community will be paying close attention to the earnings performance of Great Lakes Dredge & Dock in its upcoming release. The company is forecasted to report an EPS of $0.25, showcasing a 19.35% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $209.9 million, up 5.66% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.69 per share and a revenue of $775.45 million, demonstrating changes of -17.86% and +1.67%, respectively, from the preceding year.

Any recent changes to analyst estimates for Great Lakes Dredge & Dock should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 22.16% lower. Great Lakes Dredge & Dock currently has a Zacks Rank of #3 (Hold).

Investors should also note Great Lakes Dredge & Dock's current valuation metrics, including its Forward P/E ratio of 11.36. This represents a discount compared to its industry's average Forward P/E of 15.06.

It's also important to note that GLDD currently trades at a PEG ratio of 0.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Building Products - Heavy Construction industry had an average PEG ratio of 1.47.

The Building Products - Heavy Construction industry is part of the Construction sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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