Great Lakes Dredge & Dock: Good Near And Long-Term Growth Prospects

Summary

• Great Lakes Dredge & Dock Corporation (GLDD) has strong growth prospects due to a healthy backlog, robust bidding activity, and federal infrastructure funding support.
• The company's revenue growth is driven by high-margin capital dredging projects, increasing offshore wind market demand, and diversification into adjacent markets.
• Margins are expected to improve due to cost-saving measures, favorable project mix, and fleet upgrades, enhancing operational efficiency.
• GLDD is trading at a discount to its historical P/E average, presenting a buy opportunity as the stock is poised for further re-rating.

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Investment Thesis

Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) has good near and long-term growth prospects. The company’s revenue growth should benefit from a healthy dredging backlog of $808 million exiting 2Q24. In addition, the company is also

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.

This article is written by Gayatri S.