News

Granite Construction Incorporated GVA received an approximately $25 million contract to remove and replace the Edgewater Creek Bridge.

The City of Everett has provided this contract, which includes the removal of the existing bridge and the construction of a new bridge over the Edgewater Creek Basin and is funded by federal grants and local funds.

Although the project involves some engineering challenges due to the steep and unstable soils of the ravine, GVA’s experts will construct a trestle to facilitate access for the work. Moreover, Granite’s Smith Island Facility will supply 1,610 tons of Hot Mix Asphalt and its Granite Falls Aggregate Plant will supply 4,685 tons of aggregates. This project creates a robust backlog for the region for the next year and a half.

Project value has been included in GVA’s second-quarter Committed and Awarded Projects (CAP). The work is expected to begin in November this year and is likely to be completed in January 2026.

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.

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Shares of GVA soared 58% in the past year compared with the Zacks Building Products - Heavy Construction industry’s 51.9% growth. Earnings estimates for 2024 have moved up to $4.76 from $4.29 in the past 60 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:

Owens Corning OC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

OC delivered a trailing four-quarter earnings surprise of 17.4%, on average. The Zacks Consensus Estimate for OC’s 2024 sales and EPS indicates growth of 16% and 7.4%, respectively, from the prior-year reported levels.

Armstrong World Industries, Inc. AWI presently flaunts a Zacks Rank of 1. AWI delivered a trailing four-quarter earnings surprise of 15.2%, on average.

The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates improvements of 9.3% and 10.7%, respectively, from a year ago.

PulteGroup, Inc. PHM currently carries a Zacks Rank of 2 (Buy). It has a trailing four-quarter earnings surprise of 12.5%, on average.

The consensus estimate for PHM’s 2024 sales and EPS implies increases of 7.9% and 10%, respectively, from the prior-year reported levels.

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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.