Sterling Infrastructure, Inc. (STRL) - Stock Analysis
Last updated: Jan 14, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Sterling Infrastructure demonstrates strong fundamental growth with 32% Q3 revenue growth, expanding backlog, a $400M share repurchase program, and solid technical momentum despite some mixed liquidity, positioning it as a hot idea on operational growth and buyback support.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Strong margins ⢠Worsening liquidity ⢠Elevated valuation STRL remains profitable with strong margins and high ROE but has seen a sharp deterioration in cash generation, liquidity and working capital while valuation multiples have surged, increasing downside risk.
Price Behavior
Key Price Behavior Insights: ⢠Sideways drift ⢠Support forming ⢠Failed recovery Support Level: $300â$330 Resistance Level: $380â$400 Over the last month STRL has traded sideways to slightly down after an early-November peak near $410â$390, sliding to about $320 and forming a $300â$330 support zone while failing to retake $380â$400 resistance, leaving downside risk if $300 breaks.
Sentiment & News
Key News Insights: ⢠Eâinfrastructure growth ⢠$6.6B+ backlog ⢠Premium valuation Sterling Infrastructure is shifting into high-margin eâinfrastructure and dataâcenter projects, driving strong backlog- and revenue-led growth and analyst upgrades despite some institutional selling and a premium valuation.
AI Summary
Sterling's strategic shift into highâmargin dataâcenter and eâinfrastructure work justifies a premium multiple only if management sustains margin expansion and, critically, reverses deteriorating cash conversionâinvestors should watch operating cash flow, backlog conversion cadence, and pause conviction until OCF normalizes or buybacks/M&A won't strain liquidity.
Description
Sterling Infrastructure, Inc. is a U.S.-based construction contractor that delivers transportation, eâinfrastructure, and building services across multiple regions including the South, Northeast, MidâAtlantic, Rocky Mountain states, California and Hawaii. The company performs repair and new-build projects for highways, bridges, airports, ports, transit systems and water infrastructure, and provides site work for large eâcommerce, data center, distribution and energy customers as well as concrete foundations and related work for residential and commercial builders. Founded in 1955 and headquartered in The Woodlands, Texas, the company changed its name from Sterling Construction Company, Inc. in June 2022.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Jan 14 | Jan 21 | STRL | Sterling Infrastructure, Inc. | Sterling Infrastructure demonstrates strong fundamental growth with 32% Q3 revenue growth, expanding backlog, a $400M share repurchase program, and solid technical momentum despite some mixed liquidity, positioning it as a hot idea on operational growth and buyback support. | Active | +9.9% |