Sterling Infrastructure Stock (NASDAQ: STRL)

Sterling Infrastructure (NASDAQ:STRL) Stock, Quote.Headers.trade-ideas

Sterling Infrastructure

Sterling Infrastructure Inc is a construction company that specializes in heavy civil infrastructure construction and infrastructure rehabilitation as well as residential construction projects. The company operates in three reportable segments namely, Transportation Solutions, E-Infrastructure Solutions, and Building Solution. Transportation Solutions include highways, roads, bridges, airfields, ports, light rail, and others. Building Solution projects include concrete foundations for single-family homes. E-Infrastructure Solutions include the services which are provided to large, blue-chip companies in the e-commerce, data center, distribution center, and warehousing, energy, mixed-use, and multi-family sectors. The majority of the revenue is generated from E-Infrastructure Solutions. .

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The Taiwan subsidiary of Otis Worldwide Corporation (NYSE: OTIS) has acquired Jardine Schindler Lifts Limited (Taiwan) from the Jardine Schindler Group.

OTIS&#39; Taiwan Subsidiary Acquires Jardine Schindler Lifts in Taiwan

LDOS

We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates in a particular quarter, offering a lucrative opportunity for short-term investors to cash in. However, relying solely on sales and earnings numbers may not yield the desired long-term returns.

4 Stocks That Stand Out on Attractive Interest Coverage Ratio

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Why Recursion Pharmaceuticals Shares Are Trading Lower By Around 10%? Here Are Other Stocks Moving In Tuesday&#39;s Mid-Day Session

Sterling Infrastructure, Inc. - Common Stock

Sterling Infrastructure Inc

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IESC

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Shares of broader industrial and machinery stocks are trading higher following the Fed's announcement to cut rates by 50 basis points yesterday, which could support investment and economic growth.

The Taiwan subsidiary of Otis Worldwide Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/otis#NYSE">OTIS</a>) has acquired Jardine Schindler Lifts Limited (Taiwan) from the Jardine Schindler Group.
This buyout will strengthen the company&#39;s position in the Taiwan market with the expanded customer reach and operational capacity of Jardine Schindler Lifts. Otis is optimistic about introducing its products and service offerings, including the recently launched Otis ONE platform and the connected Gen3 elevators, to the new customer base.
This strategic transaction, a milestone for Otis, will enable it to better serve the region and its customers.
<h2>Other Growth Initiatives of OTIS</h2>
Apart from inorganic growth strategies, Otis also focuses on organic ways of fostering its growth. The primary organic growth strategy is innovation. The company seems to be invested in seeking innovation opportunities and capitalizing on them for its upcoming prospects.
Otis invested $144 million in R&amp;D in 2023. Furthermore, during the first six months of 2024, it invested $75 million in R&amp;D, up 5.6% year over year. The year-over-year increase in R&amp;D investments showcases the company&#39;s intent focus on amalgamating recent technologies into its products to stay well-positioned in the market.
As of 2023-end, it had 11 R&amp;D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. These centers are strategically placed to enable the efficient development of engineering solutions. Also, the company&#39;s approximately 1,200 global engineers focus intently on digital initiatives, software, design user interfaces and experience.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/58/77163.jpg?v=1035623020" />
Image Source: Zacks Investment Research
Shares of this leading manufacturer of elevators, escalators and moving walkways have gained 2.5% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry&#39;s 9.2% growth. Although the company&#39;s shares have underperformed the industry, it intends to continue innovating and expanding the digital ecosystem and undergo inorganic initiatives to foster its prospects in the upcoming period.
<h2>OTIS&#39; Zacks Rank &amp; Key Picks</h2>
Otis Worldwide currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
Comfort Systems USA, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fix#NYSE">FIX</a>) currently sports a Zacks Rank #1 (Strong Buy).
FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has risen 64.4% in the past year. The Zacks Consensus Estimate for FIX&#39;s 2024 sales and earnings per share indicates growth of 29.4% and 57.8%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 17.4%, on average. Shares of STRL gained 42% in the past year.
The consensus estimate for STRL&#39;s 2024 sales and EPS implies an increase of 9.7% and 26.6%, respectively, from the prior-year levels.
Frontdoor, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ftdr#NASDAQ">FTDR</a>) presently sports a Zacks Rank of 1. FTDR delivered a trailing four-quarter earnings surprise of 279%, on average. The stock has gained 47.7% in the past year.
The Zacks Consensus Estimate for FTDR&#39;s 2024 sales and EPS indicates an increase of 3% and 18.7%, respectively, from a year ago.
<a href="https://www.zacks.com/stock/news/2334050/otis-taiwan-subsidiary-acquires-jardine-schindler-lifts-in-taiwan?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2334050">To read this article on Zacks.com click here.</a>

OTIS' Taiwan Subsidiary Acquires Jardine Schindler Lifts in Taiwan

We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass estimates in a particular quarter, offering a lucrative opportunity for short-term investors to cash in. However, relying solely on sales and earnings numbers may not yield the desired long-term returns. For those seeking sustainable investment growth, a deeper dive into the company&#39;s financial health and stability is essential.
A critical analysis of a company&#39;s financial background is a prerequisite for an informed investment decision. Coverage ratios, which assess whether a company is robust enough to meet its financial obligations, play a crucial role in this analysis. A higher ratio generally indicates a stronger financial position. This article focuses on the interest coverage ratio, a key indicator used to evaluate a company&#39;s ability to pay interest on its debt, ensuring that the company is not over-leveraged and can comfortably meet its interest obligations from its operating earnings.
Interest Coverage Ratio = Earnings before Interest &amp; Taxes (EBIT) divided by Interest Expense.
<h2>Why Interest Coverage Ratio?</h2>
The interest coverage ratio is used to determine how effectively a company can pay the interest charges on its debt.
Debt, which is crucial for most companies to finance operations, comes at a cost called interest. Interest expense has a direct bearing on the profitability of a company and its creditworthiness depends on how effectively it meets interest obligations. Therefore, the interest coverage ratio is one of the important criteria to factor in before making any investment decision.
Interest coverage ratio suggests the number of times the interest could be paid from earnings and gauges the margin of safety a firm carries for paying interest.
An interest coverage ratio lower than 1.0 implies that the company is unable to fulfill its interest obligations and could default on repaying debt. A company that is capable of generating earnings well above its interest expense can withstand financial hardships. One should also track the company&#39;s past performance to determine whether the interest coverage ratio has improved or worsened over a period of time.
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>), H&amp;R Block, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hrb#NYSE">HRB</a>), Leidos Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ldos#NYSE">LDOS</a>) and Stride, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lrn#NYSE">LRN</a>) boast an impressive interest coverage ratio.
<h2>The Winning Strategy</h2>
Apart from having an Interest Coverage Ratio that is more than the industry average, adding a favorable Zacks Rank and a VGM Score of A or B to your search criteria should lead to better results.
Interest Coverage Ratio greater than X-Industry Median
Price greater than or equal to 5: The stocks must all be trading at a minimum of $5 or higher.
5-Year Historical EPS Growth (%) greater than X-Industry Median: Stocks that have a strong EPS growth history.
Projected EPS Growth (%) greater than X-Industry Median: This is the projected EPS growth over the next three to five years. This shows that the stock has near-term earnings growth potential.&nbsp;
Average 20-Day Volume greater than 100,000: A substantial trading volume ensures that the stock is easily tradable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.
VGM Score of less than or equal to B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.
Here are four of the eight stocks that qualified the screening.
Sterling Infrastructure, which is engaged in e-infrastructure, transportation and building solutions, sports a Zacks Rank #1 and has a VGM Score of B. Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average.
The Zacks Consensus Estimate for Sterling Infrastructure&#39;s current financial year sales and EPS suggests growth of 9.7% and 26.6%, respectively, from a year ago. The stock has surged 38.1% in the past year.
H&amp;R Block, which specializes in assisted income tax return preparation and DIY tax return services and products, sports a Zacks Rank #1 and has a VGM Score of B. HRB has a trailing four-quarter earnings surprise of 10.8%, on average.
The Zacks Consensus Estimate for H&amp;R Block&#39;s current financial year sales and EPS suggests growth of 3% and 15.2%, respectively, from the year-ago period. The stock has rallied 62.4% in the past year.
Leidos Holdings, which provides services and solutions in the defense, intelligence, civil and health markets in the United States and internationally, has a VGM Score of A and carries a Zacks Rank #2.
The Zacks Consensus Estimate for Leidos Holdings&#39; current financial year sales and EPS suggests growth of 5.4% and 22.6%, respectively, from a year ago. Leidos Holdings has a trailing four-quarter earnings surprise of 23.5%, on average. The stock has surged 62.7% in the past year.
Stride, a technology-based education company, carries a Zacks Rank #2 and has a VGM Score of A. LRN delivered an earnings surprise of 40.3% in the last reported quarter.
The Zacks Consensus Estimate for Stride&#39;s current financial year sales and EPS suggests growth of 6.3% and 7.7%, respectively, from the year-ago period. The stock has soared 87.3% in the past year.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2332597/4-stocks-that-stand-out-on-attractive-interest-coverage-ratio?cid=CS-BENZ-FT-analyst_blog|rw-2332597">To read this article on Zacks.com click here.</a>

PRIM

USLM

Shares of building and construction-related stocks are trading lower after July construction spending data missed estimates. The sector may be moving lower amid overall market weakness after August's ISM Manufacturing PMI data indicated an economic contraction.

Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RXRX#NASDAQ">RXRX</a>) dipped 11.6% to $6.43. The company on Tuesday announced Phase 2 data for an investigational treatment for symptomatic Cerebral Cavernous Malformation (CCM).
Nikola shares dipped 10.4% to $7.28 on Monday.
Here are some other stocks moving in today&#8217;s mid-day session.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Sify Technologies Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIFY#NASDAQ">SIFY</a>) shares jumped 103% to $0.6719. Sify becomes first in India to achieve NVIDIA DGX-ready data center certification for liquid cooling to enable breakthrough AI performance.</li>
<li>BranchOut Food Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BOF#NASDAQ">BOF</a>) gained 85% to $3.70.</li>
<li>SPAR Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SGRP#NASDAQ">SGRP</a>) surged 65% to $2.3950 after the company announced it entered into a definitive agreement to be acquired by Highwire Capital for $2.50 per share.</li>
<li>Asset Entities Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASST#NASDAQ">ASST</a>) rose 62.7% to $2.31.</li>
<li>Conifer Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CNFR#NASDAQ">CNFR</a>) shares jumped 56% to $1.0250 after the company announced that it completed the sale of its insurance agency operations for a $45 million consideration. The company appointed Brian Roney as CEO.</li>
<li>Auddia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AUUD#NASDAQ">AUUD</a>) gained 44.6% to $1.25 after the company announced it recently launched both Apple CarPlay and Android Auto interfaces for its faidr mobile application.</li>
<li>Vaxcyte, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PCVX#NASDAQ">PCVX</a>) surged 43.5% to $115.92 after the company announced it selected VAX-31 to advance to an adult Phase 3 program following topline results from its Phase 1/2 study.</li>
<li>Sable Offshore Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOC#NYSE">SOC</a>) gained 28.8% to $21.69.</li>
<li>Shoals Technologies Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHLS#NASDAQ">SHLS</a>) rose 21.8% to $6.57 after the company received a favorable legal ruling from the U.S. ITC in its patent infringement complaint against Voltage, LLC and a related foreign entity.</li>
<li>TC Biopharm (Holdings) Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TCBP#NASDAQ">TCBP</a>) jumped 17.5% to $6.55 after the company announced it dosed 5 new patients in its ACHIEVE Phase 2b trial.</li>
<li>AGM Group Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AGMH#NASDAQ">AGMH</a>) rose 16.5% to $1.27.</li>
<li>Polestar Automotive Holding UK PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSNY#NASDAQ">PSNY</a>) gained 16% to $1.4150 after the company appointed former Stellantis executive Jean-Francois Mady as its new CFO.</li>
<li>Chemomab Therapeutics Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMMB#NASDAQ">CMMB</a>) surged 15.8% to $2.34.</li>
<li>MediciNova, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNOV#NASDAQ">MNOV</a>) gained 15.3% to $1.73. MediciNova recently announced that it received a Notice of Allowance from the U.S. Patent and Trademark Office for a pending patent application, which covers MN-166 for post-COVID conditions.</li>
<li>GD Culture Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GDC#NASDAQ">GDC</a>) rose 12.8% to $6.86.</li>
<li>Big Tree Cloud Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DSY#NASDAQ">DSY</a>) jumped 12.6% to $5.99.</li>
<li>Avalo Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVTX#NASDAQ">AVTX</a>) gained 11.4% to $8.29.</li>
<li>Motorsport Games Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSGM#NASDAQ">MSGM</a>) rose 11.3% to $1.3250.</li>
<li>Applied Optoelectronics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAOI#NASDAQ">AAOI</a>) gained 10.7% to $12.57 after Raymond James upgraded the stock from Market Perform to Outperform and announced a $17 price target.</li>
<li>Unity Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/U#NYSE">U</a>) gained 9.4% to $17.91 after Morgan Stanley upgraded the stock from Equal-Weight to Overweight.</li>
<li>Intchains Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ICG#NASDAQ">ICG</a>) climbed 8.1% to $7.89.</li>
<li>Keros Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KROS#NASDAQ">KROS</a>) gained 8.1% to $49.04 after the company announced an update on enrollment in the Phase 2 TROPOS trial.</li>
<li>Novavax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) gained 4.5% to $12.94. Friday, the FDA granted Emergency Use Authorization to Novavax Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVAX#NASDAQ">NVAX</a>) COVID-19 Vaccine, Adjuvanted (2024-2025 Formula) (NVX-CoV2705) for active immunization to prevent COVID-19 in individuals aged 12 and older.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>Windtree Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WINT#NASDAQ">WINT</a>) shares dipped 42.2% to $4.68.</li>
<li>Dyne Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DYN#NASDAQ">DYN</a>) fell 31.7% to $31.47. The company announced new clinical data from its ongoing Phase 1/2 DELIVER trial of DYNE-251 in patients with Duchenne muscular dystrophy who are amenable to exon 51 skipping demonstrating unprecedented dystrophin expression and functional improvement in multiple cohorts.</li>
<li>Agape ATP Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ATPC#NASDAQ">ATPC</a>) shares fell 31.3% to $1.75 after jumping 60% on Friday.</li>
<li>IO Biotech, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IOBT#NASDAQ">IOBT</a>) dipped 29.3% to $1.06 after the company announced the IDMC observed no new safety signals in the Phase 3 trial of IO102-IO103. Also, Morgan Stanley maintained an Overweight rating on the stock but lowered its price target from $7 to $4.</li>
<li>Brenmiller Energy Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BNRG#NASDAQ">BNRG</a>) fell 25.8% to $1.1499. Brenmiller recently reported a year-over-year increase in H1 EPS results. Also, the company announced a projected pipeline valued up to $500 million.</li>
<li>Silexion Therapeutics Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLXN#NASDAQ">SLXN</a>) dipped 22.8% to $1.13.</li>
<li>Four Seasons Education (Cayman) Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEDU#NYSE">FEDU</a>) fell 21.8% to $13.30.</li>
<li>Quantum BioPharma Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QNTM#NASDAQ">QNTM</a>) declined 21.6% to $3.55.</li>
<li>Applied DNA Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APDN#NASDAQ">APDN</a>) fell 18.8% to $1.5506.</li>
<li>Xiao-I Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIXI#NASDAQ">AIXI</a>) dipped 18.6% to $3.99.</li>
<li>NANO Nuclear Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NNE#NASDAQ">NNE</a>) fell 16.1% to $8.49.</li>
<li>LightInTheBox Holding Co., Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LITB#NASDAQ">LITB</a>) declined 14.3% to $0.4455.</li>
<li>NovoCure Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVCR#NASDAQ">NVCR</a>) fell 12.7% to $16.97 as the company announced planned CEO transition.</li>
<li>Geron Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GERN#NASDAQ">GERN</a>) fell 10.8% to $4.2350.</li>
<li>Nova Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) declined 9.6% to $202.16.</li>
<li>Tidewater Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDW#NYSE">TDW</a>) fell 8.5% to $81.15.</li>
<li>Sterling Infrastructure, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NASDAQ">STRL</a>) fell 8.5% to $109.35.</li>
<li>The Boeing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BA#NYSE">BA</a>) fell 8.3% to $159.27 ahead of the September 12 expiration of the company&#8217;s contract with the International Association of Machinists, which could lead to a potential strike. Additionally, Wells Fargo downgraded the stock from Equal-Weight to Underweight.</li>
<li>Avis Budget Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAR#NASDAQ">CAR</a>) dipped 8% to $75.43.</li>
<li>Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) fell 7.2% to $70.73.</li>
<li>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) declined 7% to $20.52.</li>
<li>Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) fell 6.2% to $185.01.</li>
</ul>
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Why Recursion Pharmaceuticals Shares Are Trading Lower By Around 10%? Here Are Other Stocks Moving In Tuesday's Mid-Day Session

Howmet Aerospace Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hwm#NYSE">HWM</a>) stands to benefit from strength across its businesses, focus on operational excellence and solid liquidity position. The company remains focused on investing in growth opportunities and strengthening its long-term market position.
HWM, which has a market capitalization of $39.4 billion, currently sports a Zacks Rank #1 (Strong Buy). Let&#39;s delve into the factors that have been aiding the firm for a while now.
End-Market Strength: Howmet is benefiting from solid momentum in the commercial aerospace market. Solid demand for engine products, supported by higher build rates, spares growth and robust backlogs are driving the segment&#39;s performance. Revenues from the commercial aerospace market increased 27% year over year in the second quarter of 2024, constituting more than 50% of its business.
While the commercial aerospace market has remained a major driver, the defense side of the industry has also been witnessing positive momentum, cushioned by steady government support. The company has been witnessing robust orders for engine spares for the F-35 program and spares and new builds for legacy fighters.
Strong Liquidity Position: The company&#39;s sound liquidity position is an added positive. Exiting the second quarter, Howmet&#39;s cash equivalents and receivables were $1.52 billion against short-term maturities of $782 million. This implies that it has sufficient cash to meet its current debt obligations.
Shareholder-Friendly Policies: Howmet remains committed to increasing shareholders&#39; value through dividend payments and share repurchases. For instance, in the first six months of 2024, it paid dividends worth $42 million and repurchased shares for $210 million. Also, in 2023, the company paid dividends of $73 million and repurchased shares worth $250 million. In July 2024, it hiked its dividend by 60% to 8 cents per share (annually: 32 cents).
<h2>Price Performance of HWM</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/2e/75185.jpg?v=1009533765" />
Image Source: Zacks Investment Research
Year to date, the company&#39;s shares have surged 78.4%, higher than the industry&#39;s 30.2% growth.
Estimate Revisions: It&#39;s worth noting that the Zacks Consensus Estimate for HWM&#39;s 2024 earnings is pegged at $2.56 per share, indicating an increase of 7.1% from the 60-day-ago figure. The consensus estimate for 2025 earnings is pegged at $3.16 per share, indicating an increase of 8.2% from the year-ago period.
<h2>Other Key Picks</h2>
Other top-ranked stocks from the same space are discussed below.
Quanta Services (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pwr#NYSE">PWR</a>) currently carries a Zacks Rank # 2 (Buy).
PWR delivered a trailing four-quarter average earnings surprise of 4.6%. In the past 60 days, the Zacks Consensus Estimate for Quanta Services&#39; 2024 earnings has inched up 0.4%.
Crane Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cr#NYSE">CR</a>) presently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 11.2%. In the past 60 days, the consensus estimate for CR&#39;s 2024 earnings has increased 1.6%.
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>) presently has a Zacks Rank of 2. STRL delivered a trailing four-quarter average earnings surprise of 17.4%. In the past 60 days, the Zacks Consensus Estimate for 2024 earnings has increased 6.8%.
<a href="https://www.zacks.com/stock/news/2326114/here-s-why-it-is-worth-investing-in-howmet-hwm-stock-now?cid=CS-BENZ-FT-analyst_blog|rank_focused-2326114">To read this article on Zacks.com click here.</a>

Dividends

Here's Why it is Worth Investing in Howmet Stock Now

Advanced Drainage Systems, Inc. or ADS (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wms#NYSE">WMS</a>), a leader in water management solutions, has taken a significant step that promises to strengthen its position in the wastewater treatment market. Through its wholly-owned subsidiary, Infiltrator Water Technologies, ADS is set to acquire Orenco Systems, Inc., a leading manufacturer of advanced onsite septic wastewater treatment products. This strategic acquisition is expected to close in the third quarter of ADS&#39;s fiscal 2025, subject to standard closing conditions.
Orenco&#39;s addition to the ADS portfolio is a strategic move to accelerate growth in the advanced wastewater treatment sector. With a fragmented market landscape, this acquisition opens new avenues for ADS to expand its presence in both residential and non-residential segments, capitalizing on regulatory tailwinds driving demand.
<h3>Synergies and Innovation at the Forefront</h3>
Combining the expertise of Orenco and Infiltrator, ADS is set to leverage significant synergies in engineering and product development. This collaboration is poised to drive innovation, ensuring that the company remains at the forefront of the rapidly evolving wastewater treatment industry.
The merger will also enhance operational efficiencies, as the combined teams focus on scalability and margin expansion, a hallmark of Infiltrator&#39;s track record. The broader sales force and distribution network will enable ADS to penetrate deeper into the growing market segment, providing customers with an even more comprehensive suite of solutions.
<h3>Accelerating Growth in a Fragmented Market</h3>
The acquisition of Orenco positions WMS to capitalize on the rapidly growing and fragmented onsite septic wastewater market. This segment has gained momentum due to regulatory changes and increasing demand for efficient wastewater treatment solutions. By bringing Orenco under its umbrella, WMS is poised to expand its reach and accelerate growth in this niche yet vital industry.
<h3>Share Price Performance</h3>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/eb/74919.jpg?v=1874378528" />
Image Source: Zacks Investment Research
ADS stock has gained 7% in the year-to-date period compared with the Zacks Building Products - Miscellaneous industry&#39;s 10.9% growth. Although shares have underperformed its industry, earnings estimates for the current year have moved north to $7.18 from $7.17 per share over the past 60 days. This depicts analysts&#39; optimism over the company&#39;s prospects. The estimated figure indicates 12.4% year-over-year growth.
Notably, the company reported strong fiscal first-quarter 2025 results, with revenue growth driven by an 8% increase in Allied product sales and a 6% rise in Infiltrator business sales. Domestic construction markets saw a 6% overall revenue increase, fueled by volume growth across non-residential, residential, and infrastructure sectors. The company achieved an adjusted EBITDA margin of 33.8%, one of its highest quarterly margins, reflecting strong profitability due to better fixed cost absorption and strategic investments in safety, capacity, and efficiency.
The acquisition of Orenco by ADS marks a significant step in ADS&#39;s strategic growth plan, enhancing its leadership in the wastewater treatment sector. With a focus on innovation, operational excellence, and environmental responsibility, ADS is well-equipped to capitalize on new opportunities in this expanding market.
<h3>Zacks Rank &amp; Other Key Picks</h3>
Currently, ADS carries a Zacks Rank #2 (Buy).
Here are some other top-ranked stocks from the Zacks Construction sector:
Howmet Aerospace Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hwm#NYSE">HWM</a>) presently sports a Zacks Rank #1 (Strong Buy). HWM has a trailing four-quarter earnings surprise of 10.9%, on average. Shares of the company have gained 76.7% year to date (YTD).
The Zacks Consensus Estimate for HWM&#39;s 2024 sales and earnings per share indicates a rise of 12.6% and 39.1%, respectively, from the prior-year levels.
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>) presently sports a Zacks Rank #1. Sterling Infrastructure has a trailing four-quarter earnings surprise of 17.4%, on average. Shares of the company have gained 26.6% YTD.
The Zacks Consensus Estimate for STRL&#39;s 2024 sales and EPS indicates a rise of 9.7% and 26.6%, respectively, from the prior-year levels.
Quanta Services Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pwr#NYSE">PWR</a>) presently carries a Zacks Rank #2. PWR has a trailing four-quarter earnings surprise of 4.6%, on average. Shares of the company have gained 23.6% YTD.
The Zacks Consensus Estimate for PWR&#39;s 2024 sales and EPS indicates a rise of 14.2% and 18.3%, respectively, from the prior-year levels.
<a href="https://www.zacks.com/stock/news/2325257/advanced-drainage-systems-wms-to-buy-orenco-expand-in-wastewater?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2325257">To read this article on Zacks.com click here.</a>

Advanced Drainage Systems to Buy Orenco, Expand in Wastewater

The primary focus of Otis Worldwide Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/otis#NYSE">OTIS</a>) has been seeking innovation opportunities and making strategic investments in them to foster its growth. Keeping up with this focal aspect, the Thailand subsidiary of Otis has recently disclosed its Gen3-connected elevator platform in Bangkok.
<h3>Appealing Aspects of the Gen3 Elevator</h3>
Built upon the breakthrough designs of the Gen2 family of elevators, this new addition houses the Otis ONE IoT digital platform, thus enabling it to proactively communicate by monitoring equipment health and performance round-the-clock in real time. The new innovative elevator model will also ensure the safety of the riders due to the visibility of equipment health through remote intervention from Otis professionals by identifying potential issues or other maintenance requirements.
The availability of machine room and machine room-less options makes it flexible enough to adjust to a wide range of building uses, including residential, commercial, hospitality, medical and industrial.
The combination of various solutions, including Cloud-based APIs, the Otis eView in-car display, compass 360 intelligent dispatching technology and the Otis eCall Plus app, will make advanced passenger experiences possible. Furthermore, the inclusion of the Otis ReGen drive, LED lighting and sleep mode will ensure the reduction of energy usage and the elevator&#39;s carbon footprint.
Additionally, the company&#39;s signature Ambiance cab design, Otis PURE elevator control panel and the Otis Cab Air Purifier will add a modern touch to the new elevator model, alongside enhancing the health and well-being of its passengers.
<h3>Innovation Driving Growth</h3>
Otis seems to be on a research and development (R&amp;D) investment spree. It invested $144 million in R&amp;D in 2023. Furthermore, during the first six months of 2024, it invested $75 million in R&amp;D, up 5.6% year over year. The year-over-year increase in R&amp;D investments showcases the company&#39;s intent focus on amalgamating recent technologies into its products to stay well-positioned in the market.
As of 2023-end, it had 11 R&amp;D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. These centers are strategically placed to enable the efficient development of engineering solutions. Also, the company&#39;s approximately 1,200 global engineers focus intently on digital initiatives, software, design user interfaces, and experience.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f8/74610.jpg?v=1875172869" />
Image Source: Zacks Investment Research
Shares of this leading manufacturer of elevators, escalators, and moving walkways have gained 1.2% in the past six months compared with the Zacks Building Products - Miscellaneous industry&#39;s 4.2% growth. Although the company&#39;s shares have underperformed the industry, it intends to continue innovating and expanding the digital ecosystem and suite of digital solutions to foster its prospects in the upcoming period.
<h3>Zacks Rank &amp; Key Picks</h3>
Otis currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Construction sector.
Comfort Systems USA, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fix#NYSE">FIX</a>) currently sports a Zacks Rank #1 (Strong Buy).
FIX delivered a trailing four-quarter earnings surprise of 20.6%, on average. The stock has risen 33.9% in the past six months. The Zacks Consensus Estimate for FIX&#39;s 2024 sales and earnings per share indicates growth of 29.4% and 50.9%, respectively, from the prior-year reported levels.
M/I Homes, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mho#NYSE">MHO</a>) currently sports a Zacks Rank of 1. It has a trailing four-quarter earnings surprise of 4.8%, on average. Shares of MHO have gained 22.7% in the past six months.
The consensus estimate for MHO&#39;s 2024 sales and EPS implies increases of 9.4% and 20.8%, respectively, from the prior-year reported levels.
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>) presently sports a Zacks Rank of 1. STRL delivered a trailing four-quarter earnings surprise of 17.4%, on average. The stock has risen 36.3% in the past six months.
The Zacks Consensus Estimate for STRL&#39;s 2024 sales and EPS indicates increases of 9.7% and 26.6%, respectively, from a year ago.
<a href="https://www.zacks.com/stock/news/2323841/otis-expands-product-offering-with-new-gen3-elevator-platform?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2323841">To read this article on Zacks.com click here.</a>

Tech

OTIS Expands Product Offering With New Gen3 Elevator Platform

Management

Sterling Appoints Dan Govin As Chief Operating Officer

Guidance

Sterling Infrastructure Sees FY24 EPS $5.60-$5.75 vs $5.24 Est., Sees Revenue $2.150B-$2.225B vs $2.18B Est.

Sterling Infrastructure shares are trading higher after the company reported better-than-expected Q2 financial results.

Sterling Infrastructure (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NASDAQ">STRL</a>) reported quarterly earnings of $1.67 per share which beat the analyst consensus estimate of $1.42 by 17.61 percent. The company reported quarterly sales of $582.822 million which beat the analyst consensus estimate of $563.233 million by 3.48 percent. This is a 11.58 percent increase over sales of $522.325 million the same period last year.

Earnings Beats

Sterling Infrastructure Q2 2024 GAAP EPS $1.67 Beats $1.42 Estimate, Sales $582.822M Beat $563.233M Estimate

Shares of construction companies are trading lower possibly following PMI data.

AAON

AMSC

CHPT

FTAI

HUBB

INOD

JOBY

LOAR

PEGY

PLUG

REVG

SPXC

SRFM

Shares of stocks within the broader industrial sector are trading lower amid overall market weakness

Sterling Infrastructure's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NYSE">STRL</a>) short percent of float has risen 4.19% since its last report. The company recently reported that it has 1.55 million shares sold short, which is 5.22% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.42 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Sterling Infrastructure Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721137511_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Sterling Infrastructure has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Sterling Infrastructure's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Sterling Infrastructure's peer group average for short interest as a percentage of float is 5.26%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Peering Into Sterling Infrastructure's Recent Short Interest

Quanta Services, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pwr#NYSE">PWR</a>) is capitalizing on strong demand for its services, driven by multi-year customer initiatives focused on modernizing and strengthening utility infrastructure, expanding renewable energy generation and transmission infrastructure, and shifting toward a low-carbon economy.
Quanta stock has gained 18% so far this year, outperforming the Zacks Engineering - R and D Services industry&#39;s 17.2% growth. This Zacks Rank #3 (Hold) stock is also expected to gain from prudent growth strategies and accretive acquisitions.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/f3/70354.jpg?v=1762561956" />
Image Source: Zacks Investment Research
Yet, the cyclical nature of the business, oil &amp; gas volatility and regulatory issues are headwinds.
Nonetheless, the company&#39;s earnings per share estimate for 2024 and 2025 has moved north in the past 60 days to $8.44 and $9.56 per share from $8.42 and $9.52 per share. The estimated figure reflects a growth rate of 17.9% and 13.2% year over year, respectively.
The growth prospect is further solidified with a VGM Score of B, led by a Growth Score of A and a Momentum Score of A. The positive trend signifies bullish analysts&#39; sentiments, robust fundamentals and prospects of an outperformance in the near term.
Let&#39;s take a look at the factors supporting the growth.
High Infrastructural Demand: Quanta is capitalizing on robust infrastructural demand by leading advancements in technology solutions across decarbonization. This includes carbon management, mitigation strategies, compliance consulting, and building essential infrastructure for carbon-neutral energy solutions. Positioned strategically, Quanta is set to harness major industry trends, playing a pivotal role in the energy transition and driving technological innovation forward. Key initiatives such as expanding electric vehicle charging networks and underground electrical installations are gaining momentum, driving Quanta&#39;s impressive growth trajectory.
Strategic Growth Approach: Quanta is executing a comprehensive growth strategy comprised of three key components. Firstly, the company prioritizes delivering projects promptly, surpassing customer expectations. Secondly, it aims to leverage its core business strengths to extend into complementary adjacent service lines. Thirdly, Quanta remains committed to exploring and integrating new service offerings. With its robust engineering and project management capabilities, the company is well-positioned to seize opportunities in a market landscape currently favoring an engineering, procurement, and construction model.
As a result, Quanta envisions delivering a 10% organic adjusted EPS compound annual growth rate (CAGR) and more than 15% adjusted EPS CAGR through 2026.
Solid Backlog Level: The company ended first-quarter 2024 with a total record backlog of $29.9 billion and a 12-month backlog of $16.64 billion. This compares favorably with first-quarter 2023 total backlog of $25.27 billion and a 12-month backlog of $14.63 billion. Quanta&#39;s optimism stems from healthy backlog levels, which are expected to grow further. This demonstrates the strength of its core operations.
<h3>Factors Hindering Growth</h3>
Business Cyclicality: The business exhibits a cyclical nature as the demand for Quanta&#39;s services is subject to fluctuations. Consequently, the company is particularly susceptible to declines in both government and private industrial expenditures. Throughout its history, fluctuations in commodity prices have affected not only the oil and gas sector but also regions where economic stability is significantly tied to commodity prices.
Challenges in Regulation: Quanta navigates a complex regulatory landscape characterized by stringent requirements for project development. Both the company and its clientele encounter obstacles related to product standards, safety protocols, and environmental safeguards.
<h3>Key Picks</h3>
Some better-ranked stocks in the Zacks Construction sector are:
Sterling Infrastructure, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>) currently has a Zacks Rank #2 (Buy). STRL delivered a trailing four-quarter earnings surprise of 22.3%, on average. Shares of STRL have gained 32.5% year to date (YTD).
The Zacks Consensus Estimate for STRL&#39;s 2024 EPS indicates growth of 18.6% from the previous year&#39;s reported levels.
Willdan Group, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wldn#NASDAQ">WLDN</a>) currently carries a Zacks Rank #2. WLDN delivered a trailing four-quarter earnings surprise of 88.9%, on average. Shares of WLDN have gained 36.6% YTD.
The Zacks Consensus Estimate for WLDN&#39;s 2024 sales and EPS indicates growth of 3.6% and 6.3%, respectively, from the previous year&#39;s reported levels.
Altair Engineering Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/altr#NASDAQ">ALTR</a>) currently has a Zacks Rank #2. ALTR delivered a trailing four-quarter earnings surprise of 104.5%, on average. Shares of ALTR have gained 16.6% YTD.
The Zacks Consensus Estimate for ALTR&#39;s 2024 sales and EPS indicates growth of 7% and 9.7%, respectively, from the previous year&#39;s reported levels.
<a href="https://www.zacks.com/stock/news/2297044/push-for-low-carbon-economy-aids-quanta-pwr-amid-volatility?cid=CS-BENZ-FT-analyst_blog|rank_focused-2297044">To read this article on Zacks.com click here.</a>

Small Cap

ALTR

WLDN

Push for Low-Carbon Economy Aids Quanta Amid Volatility

Sterling Infrastructure (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NASDAQ">STRL</a>) has outperformed the market over the past 5 years by 39.61% on an annualized basis producing an average annual return of 52.34%. Currently, Sterling Infrastructure has a market capitalization of $3.66 billion. 
Buying $1000 In STRL: If an investor had bought $1000 of STRL stock 5 years ago, it would be worth $8,204.72 today based on a price of $118.49 for STRL at the time of writing.
<h3>Sterling Infrastructure's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719846033_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $1000 In This Stock 5 Years Ago, You Would Have $8,200 Today

Sterling Infrastructure's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NYSE">STRL</a>) short percent of float has risen 10.43% since its last report. The company recently reported that it has 1.44 million shares sold short, which is 4.87% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.74 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Sterling Infrastructure Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719433821_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Sterling Infrastructure has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Sterling Infrastructure's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Sterling Infrastructure's peer group average for short interest as a percentage of float is 4.77%, which means the company has more short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

How Is The Market Feeling About Sterling Infrastructure?

<h3>Will Russia Finally Retaliate Outside Of The Ukraine?&nbsp;</h3>
The&nbsp;<a href="https://www.zerohedge.com/geopolitical/children-among-mass-casualties-after-us-supplied-missile-targets-crowded-crimean-beach">Ukrainian attack</a>&nbsp;that killed at least 5 Russian beachgoers and wounded another 124 in Sevastopol on Sunday reportedly used American-supplied ATACMS missiles armed with cluster munition warheads. A number of open source intelligence analysts have suggested the missiles were observed and may have even been directed by a U.S. Air Force surveillance drone operating nearby at the time.&nbsp;
<a href="/files/u69610/x_post_1.png"><img alt="" src="https://x.com/ArmchairW/status/1804970007081976032" /></a><a href="https://x.com/ArmchairW/status/1804970007081976032"><img alt="" src="https://www.benzinga.com/files/u69610/x_post_1_0.png" style="height:450px; width:343px" /></a>
As ZeroHedge noted in the post I linked to above,&nbsp;
<blockquote>Likely Russia is gearing up to pummel multiple sites across Ukraine, and will try to go after bases hosting foreign military equipment and arms storehouses.&nbsp;
</blockquote>
But will Russia also retaliate outside of the Ukraine? There have been hints by Russian officials that it might. According to Russia&#39;s Ministry of Foreign Affairs&nbsp;<a href="https://t.me/MFARussia">Telegram channel</a>, Russian Ambassador to the U.S. Anatoly Antonov said this when asked to comment on the ATACMS strike on Crimea (emphasis&nbsp;ours):&nbsp;
<blockquote>The [U.S.] administration demonstratively supports the crimes of the Kiev regime. [...]
Washington&#39;s attempts to silence the terrible crime against Russian citizens cause anger and indignation.&nbsp;Americans cannot sit overseas and escape responsibility for the blood and tears of innocent people. [...]
It is obvious to policymakers in Washington that cluster munitions in ATACMS missiles cannot be launched without the participation of American specialists and support from US intelligence.&nbsp;It is no coincidence that enemy drones are circling over the Black Sea almost every day.&nbsp;
</blockquote>
Let&#39;s pause for a moment and note that this is a seasoned diplomat using the word &quot;enemy&quot; to describe the U.S. Back to Ambassador Antonov, skipping to the end of his answer:&nbsp;
<blockquote>We are confident that the Nazis will receive a harsh response at the front.&nbsp;And not only there.&nbsp;
</blockquote>
Similarly, this was what former Russian President and Prime Minister and current&nbsp;deputy chairman of the Security Council of Russia, Dmitry Medvedev, had to say on<a href="https://t.me/medvedev_telegram">&nbsp;his Telegram channel</a>&nbsp;after the attack (again,&nbsp;emphasis&nbsp;ours):&nbsp;
<blockquote>The US bastards are supplying banderovsty with cluster munitions and help them take aim at targets. The Kiev bastards are choosing a beach filled with civilians as their target and press the button.&nbsp;Both will burn in hell;&nbsp;hopefully, not just in the sacral flames, but even before that, in early fire.&nbsp;
What happened is not military actions but a sneaky and vile terrorist attack on an Orthodox holiday, just like the massacre that extremists had carried out in Dagestan.&nbsp;Which is why we do not differentiate between any of them, whether it is the American authorities, bandera regime, or insane fanatics.&nbsp;
</blockquote>
<h3>How Would Russia Retaliate Against The U.S.?</h3>
There&#39;s a good chance Russia won&#39;t retaliate against the U.S. now, preferring instead to see how the U.S. election in November plays out. It seems crazy to say this, but so far <a href="https://x.com/mtracey/status/1805042444008133100">the prudence and restraint of Putin and Xi </a>are what has prevented World War III.&nbsp;
<h3>The Current Worst Case Scenario</h3>
Currently, the U.S.S Eisenhower&nbsp;<a href="https://news.usni.org/2024/06/21/uss-dwight-d-eisenhower-leaving-red-sea-pacific-carrier-heading-to-the-middle-east">is in the Mediterranean</a>, and The U.S.S. Roosevelt is headed toward the Middle East. Last week, Israel&#39;s&nbsp;<a href="https://www.zerohedge.com/geopolitical/idf-leaders-approve-battle-plans-lebanon-offensive">military approved battle plans</a>&nbsp;for an offensive against Hezbollah in Southern Lebanon, in retaliation for Hezbollah&#39;s missile attacks from there against Northern Israel. Israel <a href="https://x.com/GlobalAlertHQ/status/1804990838981759460">is already bombing</a> Southern Lebanon.&nbsp;
The worst case scenario would seem to be Russia giving advanced anti-ship missiles to Hezbollah, and Hezbollah hitting a U.S. aircraft carrier with them.&nbsp;
<h3>Protecting Your Portfolio In The Worst Case Scenario&nbsp;</h3>
Last October, after the current round of hostilities in the Middle East started, we shared this post about our&nbsp;<a href="https://www.zerohedge.com/news/2024-03-24/hedging-doesnt-have-be-drag">hedged portfolio method</a>.&nbsp;
<a href="https://x.com/PortfolioArmor/status/1715312071024193543"><img alt="" src="https://www.benzinga.com/files/u69610/x_post_2.png" style="height:450px; width:328px" /></a>
As it happened, hedging proved unnecessary then, because the war didn&#39;t spread as feared. There were the Iranian and Israeli attacks on each other, but neither did much damage, and both countries made clear that they wanted to avoid an all-out war with each other.&nbsp;
A successful missile strike on a U.S. aircraft carrier would be different though. For decades, aircraft carriers have been the global symbol of American power--who knows how markets would react to seeing one hit with Russian-supplied missiles. If you&#39;re worried about that, you might consider our hedged portfolio method. We summarized that approach in our post last October:&nbsp;
<blockquote><h3>The Hedged Portfolio Method</h3>
The basic idea here is to buy and hedge a handful of promising names that are relatively inexpensive to hedge. Here&#39;s the process we use do that:&nbsp;
<ul>
<li>Estimate potential returns over the next six months for every security with options traded in the U.S.&nbsp;</li>
<li>Calculate the least expensive way of hedging each of those securities while capturing that estimated return.&nbsp;</li>
<li>Subtract the hedging cost from the estimated returns, and rank the names by estimated return net of hedging cost.&nbsp;</li>
<li>Buy and hedge and handful of the top names.&nbsp;</li>
</ul>
There&#39;s a bit more to the process than that--we also include a step to minimize cash, since everything&#39;s hedged--but that&#39;s the basic idea.&nbsp;
<h3>Sounds Difficult?&nbsp;</h3>
Manually, it would be. But we use an automated system where you just type in the amount of money you want to invest, the largest drawdown you&#39;re willing to risk, and our portfolio construction algorithm does the rest.&nbsp;
The interface looks like this.&nbsp;
<img alt="" src="https://www.benzinga.com/files/u69610/create.png" style="height:317px; width:624px" />
</blockquote>
<h3>What If Nothing Happens?&nbsp;</h3>
There&#39;s a mutual fund manager whose name we won&#39;t mention, who predicted doom for years, hedged, and generated lousy returns as a result.&nbsp;We try to avoid that. Let&#39;s see what would have happened if you used our hedged portfolio method around the time of our hedging post back in October.
This is the hedged portfolio our system presented on October 19th of last year, to an investor with $3 million who was unwilling to risk a decline of more than 20% over the next six months if the Mideast war sank the market. This portfolio included ACM Research Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acmr#NASDAQ">ACMR</a>), Affirm Holdings, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/afrm#NASDAQ">AFRM</a>),&nbsp;Abercrombie &amp; Fitch Co.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/anf#NYSE">ANF</a>),&nbsp;Dell Technologies, Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dell#NYSE">DELL</a>), Fabrinet (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fn#NYSE">FN</a>),&nbsp;NextGen Energy, Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nxe#NYSE">NXE</a>),&nbsp;Super Micro Computer, Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smci#NASDAQ">SMCI</a>), and&nbsp;Sterling Infrastructure, Inc.&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/strl#NASDAQ">STRL</a>).&nbsp;
<img alt="" src="https://www.benzinga.com/files/u69610/1_port.png" style="height:482px; width:624px" />
<img alt="" src="https://www.benzinga.com/files/u69610/2_port.png" style="height:500px; width:624px" />
As you know, the Mideast didn&#39;t sink the market.
Here&#39;s how his hedged portfolio performed over the next six months, net of hedging and trading costs:&nbsp;It returned 30.68%, versus the S&amp;P 500&#39;s return of 16.59%.&nbsp;
<img alt="" src="https://www.benzinga.com/files/u69610/3_0.png" style="height:488px; width:624px" />
<img alt="" src="https://www.benzinga.com/files/u69610/4.png" style="height:250px; width:624px" />
You can see an interactive version of that chart&nbsp;<a href="https://portfolioarmor.com/front_tests/5371">here</a>.&nbsp;
Seems like a pretty good deal, no? If the market crashes, you&#39;re protected, and if it doesn&#39;t, you still have a shot at a market-beating return.&nbsp;
If you&#39;d like to stay in touch
You can scan for optimal hedges for individual securities, find our current top ten names, and&nbsp;create hedged portfolios&nbsp;on&nbsp;<a href="https://portfolioarmor.com/">our website</a>.&nbsp;You can also follow Portfolio Armor on X&nbsp;<a href="https://twitter.com/portfolioarmor">here</a>, or become a free subscriber to our trading Substack using the link below (we&#39;re using that for our occasional emails now).
<iframe frameborder="0" height="320" src="https://portfolioarmor.substack.com/embed" width="480"></iframe>
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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Sterling Infrastructure (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STRL#NASDAQ">STRL</a>) has outperformed the market over the past 15 years by 2.08% on an annualized basis producing an average annual return of 14.72%. Currently, Sterling Infrastructure has a market capitalization of $3.79 billion. 
Buying $100 In STRL: If an investor had bought $100 of STRL stock 15 years ago, it would be worth $827.38 today based on a price of $122.90 for STRL at the time of writing.
<h3>Sterling Infrastructure's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1718902823_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

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