Granite Construction: Expect Higher Margins And Tailwinds To Spur Stock

Robert F. Abbott
1.32K Followers

Summary

  • Granite Construction's strategic plan is to deliver higher margins and increased profitability.
  • Because of its size, vertical integration, and other factors, it has several competitive advantages.
  • GVA's growth prospects are strong, supported by ongoing reductions in inflation and increased demand for construction and infrastructure projects.

Construction in progress of a mass rapid transit line

ThamKC/iStock via Getty Images

I am bullish on Granite Construction Incorporated (NYSE:GVA) because its strategic plan is delivering higher margins and because of significant tailwinds from lower interest rates and the Infrastructure Act.

About Granite

The company operates through two

This article was written by

1.32K Followers
Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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