Sterling Infrastructure: Now A Bargain

(9min)

Summary

  • Sterling Infrastructure stock is cheap again after the recent pullback.
  • Sterling Infrastructure is well-positioned to benefit from the AI gold rush.
  • Its E-infra solutions business accounts for over 70% of its operating income, underpinned by its data center focus.
  • STRL's profitability growth inflection is expected to be sustainable, justifying the market optimism. I will explain why.
  • I argue why the stock is now a bargain as the AI spending boom could drive a multi-year profitability growth inflection.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

AI legislations

J Studios

Sterling Infrastructure, Inc. (NASDAQ:STRL) is one of the leading companies ranked within the Construction and Engineering industry, part of the Industrials sector (XLI). I've covered the company in a previous article, expounding on STRL's

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of STRL either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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