STRL
Sterling Construction Company Inc
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I’ve been invested in the builders and electrical plays for a while, prior to the openAI stuff. FIX was just added to the SP500 and their numbers are wild in term of growth. Same with IESC. STRL is a great builder name. Then even grid services names have been great, since the need to update the grid is a macro theme outside of AI. Stuff like PRIM, PWR, and AGX.
An expected P/E for a contractor is \~6-8. $STRL is trading at 32.
The stock has run up 100% in the last year, so I don't think they're all that quiet. STRL's PE ratio is comparable to NVDA's at this point.
I’m invested in an ETF- SCHG. Individual stocks-V,MA, PM, MO, FIX, AVAGO, STRL.
It may not be an imminent bubble burst, but too many people are also acting as if stocks up 200% in a year are in early innings and then are surprised when they lose 30-50% in a month the moment sentiment turns slightly. "the major players are investing heavily in AI and evolving rapidly." And the stocks are priced as if that's the case. Look at the Deepseek situation early this year - while the AI theme certainly rebounded, things like VRT and VST were down 25-35% in a matter of a few days - and then kept going lower until rebounding off the April low. So I'm not saying that there's an imminent bubble, but the easy money in AI imo has been made. Corrections will happen, but more broadly if you're now piling into AI at this point you have to really hope that the strength of the theme is maintained because the moment momentum starts to slow/concerns start to appear it looks like CRWV in the last month, or ORCL over the last couple of months. Even META is down nearly 20% since the end of October. "I’d like to focus on companies involved in building data centres" FIX and STRL are up 100%+ YTD (and massively over the last 5 years) and a lot of that is on the strength of the data center theme. If something caused that theme to slow or stop, there's not another growth theme of that magnitude for these names. I'm not bearish, I'm not thinking that there's a bubble that will imminently pop but on the opposite end, I don't think it's early either and a lot of the easy money has been made. I've seen people treat the speculative data center names in recent months like demand will be endless and this is just the start. Shortly after, NBIS is down 32% in a month and CRWV 45%.
Load up on STRL calls I’m telling you it way oversold for now strong of a position and backlog and growth they are having as CIVIL infrastructure… AI growth baby
STRL for infrastructure and CRWV for buildout calls for both down more today but loaded yesterday. I have faith in the V. They won’t let it drop more
Why the hell did I buy $370 calls on STRL
Am I stupid for full porting STRL? I mean, I know I'm stupid, but are things like this a sign of that?
I'm down like 2.75% today. Worst names for me: $STRL, $FEIM, $RKLB, $ORN
That sucks. I'm red overall, but at least have a few winners, but all earnings report related: $LDOS is doing well from their report this morning. $KKR is probably up because of $APO report. $STRL is up from their report yesterday. $SMID is probably up from $GLDD's report. $SHGC is up from their report. Also have some big losers too: $UBER, $RKLB, $SHLS, $PRIM are all down over 5%.
$STRL Q3 * Revenues of $689.0 million. Revenues increased 32% excluding RHB from the prior year quarter. The CEC acquisition contributed $41.4 million to revenue in the quarter. * Gross margin of 24.7%, up from 21.9%. * Net income of $92.1 million, or $2.97 per diluted share, increases of 50% and 51%, respectively, and a new third quarter record. * Adjusted net income^((1)) of $107.7 million, or $3.48 per diluted share, increases of 57% and 58%, respectively. * EBITDA^((1)) of $143.1 million, an increase of 42% and a new third quarter record. * Adjusted EBITDA^((1)) of $155.8 million, an increase of 47%. * Cash flows from operations totaled $253.9 million for the nine months ended September 30, 2025. * Cash and cash equivalents totaled $306.4 million at September 30, 2025. * Backlog at September 30, 2025 was $2.58 billion. The CEC acquisition contributed $475.3 million to backlog. * Combined backlog^((2)) at September 30, 2025 was $3.44 billion. The CEC acquisition contributed $810.5 million to combined backlog. * Share repurchases totaled $4.7 million in the quarter at an average price of $274.37 per share. "Our outstanding third quarter results reflect the strength of our portfolio, as we delivered very strong top line growth of 32% and even better bottom-line growth, with adjusted diluted earnings per share reaching $3.48, a 58% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 58% growth in E-Infrastructure Solutions and 10% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 25% marked a new high for the Company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 47%."
Sorta difficult to answer that. I guage the trade based on how much the premium is, the number of of up/down earnings revisions reported in the prior 90 days, how much the stock moved after the prior earnings report and then I look at what the premiums are at for what I think the recent support levels are. The higher the stock price is riding vs its ath the more otm I’ll go. For instance I’ve made great premiums from mpwr but it’s at ath now and I expect people at some point to take their profits despite an earnings beat so not gonna play with this one again until a pullback. PLTR, AVGO, NVDA, COIN, CLS, CRWD, GEV, SNOW, STRL, TSLA are other ones that comprise the bulk of my trades. As the stocks go higher, instead of single contracts I increase the number of contacts at more otm stikes or ladder them downwards.
Just for an example. when there was deepseek news from earlier in the year, a ton of names got haircuts. NVDA was down like 20%, VRT was down like 30%, ANET down 22%, $STRL (a builder of data centers) was down like 30%. I wouldn't be surprised to see a ton of panic selling when the first one finally makes the announcement. Also wouldn't be surprised to see when one company cuts back, the others will follow.
"Who is your one-stop shop for navigating your full financial picture " Me. I spend hours every day, usually in the very early morning (I've been up for a couple of hours already) trying to figure out where things are going. Reading news, reading articles, looking at companies (I'll sit and look through a couple hundred in a morning) etc. But the nice thing is that I love it - if I didn't, I'd likely have gone to a financial advisor. I definitely make mistakes - investing is a continual learning experience - but try to learn from them. While I never want to have an issue with an investment, it's a chance to learn and work through the problem. IMO, it depends on how much time you want to devote to investing. If you don't want to keep up with everything, then you could structure a variable portolio that left you some room to make a few active choices while the rest is passive. For example, you could have a portfolio that's 25% your active choices and 75% a mixture of passive funds dedicated to growth/quality/international and a portion to gold/bitcoin/real assets. Maybe some periods you have a lot more ideas and the active goes up to 50%, or some periods you don't and the passive goes to 100%. There's no one answer/one right path, you can structure something that works for you although that takes some trial and error/is going to be different for everyone. "Every time I set a goal/strategy it’s upended by a major change to “the game” as we knew it." There are things that get upended briefly by headlines, but is that really a permanent change or an opportunity from short-term negativity? I tend to have a reasonable degree of diversification. I certainly have exposure to the AI theme, but in a way that's enough to be meaningful yet not so overly significant that I'm entirely reliant upon it/would have to totally scramble if some headline next week suddenly curtailed the theme. Value investing broadly hasn't worked for ages, but that doesn't mean that there aren't specific opportunities. Some people over time (mainly value investors) have said "ignore the crowd" and I don't agree with that at all. Especially in what has turned into a very narrative driven market, you can't ignore the crowd. Being contrarian for the sake of being contrarian has been a terrible strategy for the last five years. But that doesn't mean that you can't find very broad appeal companies that the crowd simply isn't looking at. I don't know that it continues at this rate, but swiss dermatology co Galderma is an example of that that has been a success for me. There's a lot of good companies beyond the dozen or two most popular things discussed on Reddit. AI is obviously the biggest theme, but it's not the only theme/things that have worked over the last year/two. In terms of AI, for all the discussion of NVDA, construction/contractor names like FIX and STRL have outperformed over the last 5 years.
> This is departure from boomed net income Mag 7 AI stocks and the new really stocks that seems more speculative and volatile with unsupported P/E- thoughts? The data center spending beneficiary trade (construction, utilities, energy/IPPs, etc) has been a tremendously successful theme for a couple of years now (I mean, nobody talks about the fact that STRL and FIX have done better than NVDA over the last 5 years) but some of the stuff has gotten overextended. That's not saying that they're not doing well (they are), but imo some of this stuff gets to levels where even a blip/bump in the AI theme (not that I see that happening imminently but who knows) would cause these names to correct significantly. If the AI theme ever slowed more materially, the re-rating for some of this stuff would be major. I mean, VST was a bankrupt utility and did not a whole lot for 7 years after going public again. Soared because of the data center power need, but look at the Deepseek announcement earlier this year - VST was down 28% in 3 days. Bounced and then with tariffs it nearly went down 50% from the January highs to the April bottom. VST and BE and a lot of other things might continue higher or much higher (and earnings certainly show no sign of slowing), but how this stuff did after the Deepseek announcement shows that if there was sudden news that was materially negative to AI spending, some of this stuff wouldn't just decline it would be rug pulled.
Less lately, but LMB is another example. STRL is another. LGN is another that IPO'd recently. API somewhat underappreciated, as well. When I and a few others started talking about data center power beneficaries in early 2004 the response was kinda crickets but eventually people took a bit of interest. It's interesting that the construction names really never caught on much despite continued outperformance - this sub is still heavily Mag 7-oriented. I do question the sustainability of the growth rate over the medium/long-term but can go on in the shorter-term longer than I would think.
Totally fair assessment. If you go through my history, I'm pretty active in the sub and making suggestions in companies. I tend to post less during football season, since I shift my attention over there. I'm more of a GARPY investor, but generally suggest names that are actually profitable. I enjoy finding less covered stocks, so the stuff I suggest is usually more under the radar. Like here's me posting about STRL 3 years ago lol [https://www.reddit.com/r/stocks/comments/11d8n9b/comment/ja8lmzs/?utm\_source=share&utm\_medium=web3x&utm\_name=web3xcss&utm\_term=1&utm\_content=share\_button](https://www.reddit.com/r/stocks/comments/11d8n9b/comment/ja8lmzs/?utm_source=share&utm_medium=web3x&utm_name=web3xcss&utm_term=1&utm_content=share_button) Stock is now 800% since then.
Totally. I mean I'm also a point where I'm up like 800% on something like STRL. That was down 11% yesterday. Nothing has changed with the company yesterday, nor did my thesis. No reason to sell. Even if it's down 11% in a a day, the stock is still pretty solid.
Not really, just a lot companies got hit. For example, STRL was down like 11% yesterday. It's now up 4%. STRL has a forward PE of 31, but a PEG of 1.36 [https://finviz.com/quote.ashx?t=STRL&p=d](https://finviz.com/quote.ashx?t=STRL&p=d) Revenue growth has slowed a bit, but offers solid ROIC and seeing great growth with operating margin, gross margin, and EPS growth has been great. [https://quickfs.net/company/STRL:US](https://quickfs.net/company/STRL:US)
pro tip: you want FIX, EME, and STRL in your long term port
STRL.... dont sell gold, sell shovels stock. They are a construction company that specializes in building data centers. I keep buying every chance I get. They are the stock that is doing excellent during this data center gold rush that nobody is talking about.
$STRL. Big on e-infrastructure and construction
Don't buy the shovel sellers. Buy those who make timber and iron for the shovels. They have reasonable valuations, too. COMM, STRL, TSM, MU, WLDN, CLS etc. And then gold diggers >> gold. Still lots of undervalued ones with 150% margins.
STRL CRDO both overlooked. Both AI infrastructure plays. STRL a former low margin construction company successfully pivoting into high margin data center projects via acquisition and shift in management strategy to higher margin projects in general CRDO highly innovative connectivity solutions for datacenters specifically in rack-to-rack connections. Rack-to-rack latency is currently one of the largest bottlenecks in AI compute speeds in both inference and training especially true with larger LLM models that do not fit onto single rack systems.
I entered Google at 170 because its P/E was low plus believed it its ability considering how big it can go with the advent of AI. In healthcare, some value investing can be done in Pfizer etc but short term returns are not there. Another success story in Tech sector is AMD. Also Rocketlab is well placed. I’m sort of trying value investing and not so aggressive in trading. However I have missed the bus like STRL also. Nebius etc.
Non Big Tech AI Stocks - interesting exposures in engineering, utilities & electronics MRVL CLS POWL STRL Also like UNH, LLY & NOVO in healthcare.
STRL and HOOD, both in bubble territory. Taking me 8-10x returns and getting out.
Of course STRL continues to be a beast. Nice to see PRIM finally get some love
$STRL * Record Q2 net income of $71.0 million, up 37% year-over-year * Revenue growth of 21% to $614.5 million (excluding RHB) * Significant gross margin expansion to 23.3% from 19.3% * Strong cash position of $699.4 million with excellent cash flow generation * E-Infrastructure Solutions segment showed 29% revenue growth with 28.3% operating margins * Backlog increased 24% year-over-year to $2.01 billion * Full year 2025 guidance raised across all metrics * Building Solutions segment revenue declined 1% with 28% drop in adjusted operating income * Residential business facing headwinds due to housing market slowdown * Transportation Solutions experiencing revenue impact from downsizing Texas heavy highway business * Book-to-burn ratio decreased to 0.8x in Q2 due to seasonal lull in Transportation awards "Our outstanding second quarter results reflect the strength and resilience of our portfolio, as we delivered very strong top line growth of 21% and even better bottom-line growth, with adjusted diluted earnings per share reaching $2.69, a 41% increase," stated Joe Cutillo, Sterling's Chief Executive Officer. "Revenue growth was again fueled by strong 29% growth in E-Infrastructure Solutions and 24% growth in Transportation Solutions, which more than offset softness in the Building Solutions market. Gross profit margins in the quarter of 23% marked a new high for the company, as we have shifted the business toward higher-margin service offerings. The combination of strong revenue growth and gross margin expansion contributed to adjusted EBITDA growth of 35%."
want a stock on a heater? STRL
Research incessantly, read the news and look for themes. If (fill in the blank) headline is suggestive of a potentially compelling theme, I always like to have an answer or multiple stock answers as to how to express that theme. I will often create what are effectively "mini ETFs" around a theme - multiple, complimentary names to take advantage of something like data center demand. Buy things early or at least relatively early - there are people who have posted about the power/grid theme only recently after some headlines but something like GEV is up about 270% in the last year. It's not that the story doesn't possibly have further to go, but people are acting like it's the first inning or something when a lot of the easy money has already been made. If companies start creating ETFs around a theme it certainly isn't early anymore. Be open to the idea that something potentially hot doesn't always look slick/exciting. A few people including myself were on here in early 2024 talking about names like VST and other industrial/utility AI beneficiaries - the response was crickets because it seemed like nobody wanted to hear about anything AI related that wasn't tech. Meanwhile, VST, FIX, LMB, CEG, VRT, STRL, PWR, etc - all these things that have outperformed a lot of tech names over the last few years. So much spending on data centers and related energy needs - ask the question: who are the beneficiaries of all that spending? Research and ask yourself "if X then Y?" questions. "and do some people know which biotech stocks to invest in" I've had four biotech buyouts this year so far and have done pretty well with it over the last few years but it's very difficult, very volatile, time-intensive (to the point where I've had to dial down the amount I have in it) and risky. There have definitely been some names that I've owned that haven't worked out, but more have. It's a sector that I have some concerns about and also one where you have to reaaaally know what you own (and continue to do the homework) or you're going to get shaken out/have issues. It's also a sector where I would really particularly focus only on best ideas and not own just to own biotech/gamble. Biotech is fascinating and rewarding but also very demanding (imo, definitely something where you absolutely have to have a thesis/do the homework and I wouldn't own it just to own it/gamble) and volatile.
Anyone else following $STRL? Thoughts?
Sorry the wait, as of now, this is more heaviest names: STRL, FIX, IESC, RLKB, AGX, NVDA, CW, JBL
Infrastructure. Sterling infrastructure STRL IES holdings IESC Been holding for 6 years and are up 2,600% and 1,200% respectively Sterling infrastructure was in fact the 2nd best performing stock for the last decade behind Nvidia
Man, I found $STRL when it was $20 and never bought in… would’ve been a 10-bagger. $AMSC, $SLND, $TPC I think could run for a while. Price action on $TPC especially has been so strong. I try to put my entire portfolio into 5-10 tickers at the most.
Nice! I'm in STRL and have been for a while I've been trying to reduce stock diversification (too many positions), so I may not get in since I already have that and will add on big dips But we'll see. Will look more into it :)
Dangerous turf here, my friends. Lots of folks out there with bad investments they want to unload on us, and only most of them brokers. RDW is an example. Really volatile, down 17% then up 11% based on not very much news. That means big holders are manipulating it. If they can get a bunch of us to buy they can unload their poorly timed purchase. Plus somebody on here is claiming it is profitable. It is not. It lost $2.27 per share TTM. Yes, it has some drone exposure, some space exposure and some solar power exposure. All of those are being held hostage by the unpredictable Trump administration. I’d like something with a solid recent history that is still undervalued. That would have been NVDA in April. After trading in the $130s early in the year it crashed to under $100 after Liberation Day. Yet it makes the most important chips on the planet. There was, and is, no way the company was going anywhere. Up to $160 now, so maybe fair valued but no longer undervalued. A good possibility is Sterling Infrastructure, a Texas based construction company that has gone from basic infrastructure building, like clearing land, building roads and bridges and installing underground pipes and lines, to a big player in server farms. Every time you hear about how much electricity AI is demanding, think STRL. It connects the power source to the server farms. Reasonable PE of 26, high but not astronomical beta of 1.36, earnings of $8.50 a share and price up 35% YTD.
ASML is a core value stock and safe AI/chip play. I own it and think it will continue to do well at least to its previous highs of $1110. STRL… interesting, but low trading volume adds risk and volatility, plus I’d need to see reasons to believe it can sustain SP. Not my type of play. Before I’d play STRL at this price, I’d take a comparable risk on an up n comer like APLD, but for growth and value investment I’d look at LBRT. Liberty is an energy and services company with services to oil, natural gas, strong on renewable geothermal energy, power distribution and commercial and industrial energy storage solutions. Interestingly, also connected to US Sec. of Energy, who was the CEO prior to taking appointment, which can’t hurt the company. Plus, they show strong earnings, a ridiculously low PE of 7.69 and haven’t been inflated yet following the April drops. Decent trading volume too. It will eventually run up.
RKLB - my home speculative plays CRS/HWM - Aerospace names. There is a big back log of planes and jets. OPXS/EPS/MOG.A/TTMI - Defense Names FIX/IESC/STRL - AI/Data Center/Electrification plays AGX/NXT - Solar/Utility plays. These companies should have some good tail winds for the next 3-5 years.
I sold off some of my stuff (or at least took profits) after the Deepseek debacle (I lowered my gains in $STRL, but nothing came off the table). The only stock that I've really hammered has been $BRK.B, because of the Buffett effect, and the fact that the warchest - quite frankly - is too big to do ANYTHING with, and they won't give out dividends.
STRL found on financialpanda.org
I sold a lot of my riskier names after riding them up 30-90%. Completely sold out of NBIS STRL KKR. Also sold out of my APLD calls which yielded me several hundreds of percent. I never dreamed these calls would go up so much. It was supposed to hedge my short but the calls went up so much it made me more money than my whole short position would have even if the stock went to 0. I also shorted a fuck ton more QBTS APLD and a few other names. I have a huge cash pile now. This market has been incredible. The injection of all this capital keeps pushing my portfolios to new all time highs. I’m up about 20-80% depending on my portfolio. I’m not counting my portfolio which is 100% UNH puts because that portfolio is up over 2000%. I liquidated all the puts and already went all in UNH in that port. What’s next? I can’t tell, but the market is too frothy and excited. I expect shit companies to die, hence me shorting more and more, and I expect good companies to keep going up, fueled by corporate buybacks and hedge fund money. I am still buying UNH. I am holding cash and buying low beta stocks now, keeping in mind the vast majority of my stocks are high beta.
Up front question, looking for AI infrastructure plays for Gulf area AI buildout. Companies like EME FIX MZT STRL HON JCI are well established in North America but are they as well positioned to pick up work in the Gulf area or will they be shut out by India, China or other SEA countries? Researching the likes of EME FIX HON over the last month, I am wondering if they are played out/range limited.
STRL is consistently gaining bigly, options plays are very low volume, not worth the gamble I don’t think, hopping in on shares for now w/ limit order for $180
Construction/engineering names have all popped after earnings and continued upward ($TPC, $LMB, $STRL, $AMRC). So here’s my idea, buy $SLND before earnings on 5/13. These have all been turnaround plays that seem to have turned around, so I think $SLND will share a similar story and begin a nice uptrend. Stock has been basing sideways for a year while institutions accumulate and there’s only 4.58mil shares in the float. I caught the move on $TPC with this thesis. Also insurance names are a good play right now. $HRTG, $KINS, and $PLMR are my top picks.
$STRL * Revenue grew 7% to $430.9M with strong margins at 22.0% * Net income increased 27% to $39.5M with adjusted EBITDA up 31% to $80.3M * Strong cash position of $638.6M with $84.9M operating cash flow * Backlog increased 17% YoY to $2.13B with 2.2x book-to-burn ratio * E-Infrastructure Solutions showed 18% revenue growth and 61% adjusted operating income growth * Strategic acquisition of Drake Concrete expected to add $55M in revenue * Raised full-year 2025 guidance reflecting strong performance * Building Solutions segment revenue declined 14% with 18% drop in adjusted operating income * Housing market slowdown affecting residential businesses * Downsizing of Texas heavy highway business will impact near-term revenue and backlog * Severe weather conditions affected operations in Q1 **E-Infrastructure thrives with 61% operating income growth; data centers drive 65% of backlog; strategic Drake acquisition strengthens DFW presence.** Mr. Cutillo continued, "We ended the quarter with backlog of $2.1 billion, a 17% increase compared to the prior year first quarter on a like-for-like basis. Our book-to-burn ratio in the quarter was 2.2x. Notably, E-Infrastructure Solutions had another strong quarter for awards, as backlog reached over $1.2 billion and grew 27% compared to the prior year. Additionally, our pipeline of high-probability future phase work continues to grow. Our operating cash flow generation in the first quarter was again excellent at $85 million, driving our net cash position to $329 million, and supporting share repurchases of $44 million." Mr. Cutillo added, "In E-Infrastructure Solutions, we achieved 18% revenue growth and 61% adjusted operating income growth in the first quarter as adjusted operating margins expanded nearly 618 basis points to reach 23.2%. This excellent margin profile reflects our shift toward large mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers. The data center market remains very active and now represents over 65% of E-Infrastructure backlog.
Also interesting news around Amazon to spend 4B on small down delivery expansion. Wonder if STRL might win any of those bids.
Manufacturing in America is stocks like POWL , MOD , STRL , NVT could go on but they peaked when 🥭 was elected . Stonk market charts don't lie .
That was a nice buy! I woke up at 6:30 to check it out, saw it as 68 and said ok let's sleep an hour and see what happens. Woke up to the big pop and have been watching it melt up since haha. I'll try to get in tomorrow. Might just need to buy in. My stupid sleepy self. I reopened my position in STRL that I closed out a little ago. And also bought NVMI.
I see - thanks! I remain in IESC and FIX with my early positions, and STRL and LMB are at the top of my buy list for when we start to see some relief. It's extremely impressive how LMB's management has managed to shift their business. 10x EV/EBITDA now? This and STRL are looking so cheap. Will be interesting to see how LMB holds up tomorrow. I'm predicting another big red day.
Been looking out for insider buying on some of the CAPEX names. Not seeing any in the others I own so far, but STRL's CEO bought some this week ([link](http://openinsider.com/screener?s=STRL&o=&pl=&ph=&ll=&lh=&fd=730&fdr=&td=0&tdr=&fdlyl=&fdlyh=&daysago=&xp=1&xs=1&vl=&vh=&ocl=&och=&sic1=-1&sicl=100&sich=9999&grp=0&nfl=&nfh=&nil=&nih=&nol=&noh=&v2l=&v2h=&oc2l=&oc2h=&sortcol=0&cnt=100&page=1)). cc: u/_hiddenscout. Not sure who else owns.
I left yesterday. I've been burned by holding through deepseek and then all of Trump's shenanigans. It's all this tariff talk that really brought this down and moved focus away from the growth areas. Luckily though, I bought these names early enough that I had some smaller gains left. If things get worse, these names are just going to keep falling. With that said, I'm still holding a couple names in this space: IESC, STRL, LB. I've decide to hold these for the long term and add on further weakness.
I feel like even without tariffs a bunch of these stocks would be rug pulled . America stock market operates like most companies small cap markets and stupidity runs wild . CELH , ELF , CAVA , WIM , STRL , MOD the list goes on the rug pull happens all the time . USLM , UFPT ..
FIX, STRL, and PWR are related stocks that have hadall good to great earnings but are down big from highs. Most of the pain started after Deepseek and they haven’t really recovered but these companies have great earnings quarter after quarter and are integral parts of economic trends moving forward.
STRL is starting to claw back today. I still think the company has a significant margin of safety, but we gotta clear some hurdles before we think about racing to $200 on that stock again.
Thinking im still too exposed to the AI-Utilities play, problem is my cost basis on companies like CEG, GEV, STRL, etc are so low
I'm really fighting the urge to not add to names like IESC/FIX/STRL/POWL before Nvidia earnings. Still holding my positions though.
For now, market seems happy with STRL earnings it seems
$STRL * Record gross margins exceeding 20% annually * Q4 operating income in E-Infrastructure up 50% with 24.1% margins * Strong cash flow generation of $497.1M in 2024 * Data center revenue grew over 50% YoY * E-Infrastructure backlog up 27% to over $1B * $20M in share repurchases executed * Net cash position of $348M * Building Solutions Q4 revenue declined 3% * Transportation Solutions Q4 revenue and operating income declined * Slowdown in Dallas-Fort Worth residential market * Strategic reduction in Texas heavy highway work affecting near-term revenue We closed the year with combined backlog of $1.83 billion, which was up slightly from prior year levels on a like-for-like basis. Notably, E-Infrastructure Solutions backlog reached over $1 billion and grew 27% relative to the prior year. Additionally, award activity has been strong in the first quarter of 2025 and our pipeline of high-probability future phase work continues to grow. Our operating cash flow generation in the fourth quarter of 2024 was again excellent at $174 million, driving our net cash position to $348 million, and supporting share repurchases of $20 million." - CEO **Full Year 2025 Guidance** * Revenue of $2.00 billion to $2.15 billion * Net Income of $215 million to $230 million * Diluted EPS of $6.75 to $7.25 * EBITDA^((1)) of $370 million to $395 million
anyone looking at STRL calls? earnings today
Seriously tho... at what point is STRL oversold.
I think the market is getting too reactive with a lot of these datacenter plays. STRL/PWR/GEV/CEG/VST etc all getting nuked but long term these companies all have solid financials and business lines beyond datacenters.
I'll admit I was deep in margin on UFPT , USL , MOD , STRL , POWL , AXOM . If I where still holding I would be down alot I can see how the ripple through the market causes a cascading effect . SFM , WING , CAVA if I didn't get out when I did I would be in bankrupt .
Going with a STRL knife catch, let's see how this pans out in the next week or so
Agreed. I sold out of some of my weaker, related, positions to free up cash. I still want to buy some more shares in the existing positions with my newly freed cash (ex. IESC, FIX, STRL, VRT, etc) since doing that has been rewarding in the past, but just not sure this time around. Was waiting to see some upward movement first. What are you rotating into? I recall you had an interest in shipbuilding names previously. Did you see the big drop in $HII? I'm invested in MHVYF. I was looking at LECO at some point, but didn't open a position.
Here are some stocks I am holding that have been giving me some trouble as of late. I want to get an opinion on some long term outlooks on them. MU: \~(2% of portfolio) GEV: \~(3.5% of portfolio) CEG: \~(5% of portfolio) CELH \~(<1% of portfolio) ONTO \~(3% of Portfolio) PWR \~(2.5% of portfolio) STRL \~(1.5% of portfolio) CELH was more of a speculative play based on cash pile, falling valuation, and international expansion. Im totally fine taking the L on it. In the long term I'm confident about the future of energy plays like CEG and GEV but they have been hammering me since the deepseek fiasco, despite being some of my best plays in 2024. Same deal with PWR and STRL, and I am holding some hope that we see permitting reform under this administration. ONTO and MU I bought when they were at much lower valuations. ONTO has a lot of cash and little debt so I am confident in their ability to expand their business, but again they have been a burden since deepseek and the new admin.
Looking at premarket, here's what I am going to get cooked the hardest on *today,* not sure about long term. MU: \~(2% of portfolio) GEV: \~(3.5% of portfolio) CEG: \~(5% of portfolio) CELH \~(<1% of portfolio) ONTO \~(3% of Portfolio) PWR \~(2.5% of portfolio) STRL \~(1.5% of portfolio) CELH was more of a speculative play based on cash pile, falling valuation, and international expansion. Im totally fine taking the L on it. In the long term I'm confident about the future of energy plays like CEG and GEV but they have been hammering me since the deepseek fiasco, despite being some of my best plays in 2024. Same deal with PWR and STRL, and I am holding some hope that we see permitting reform under this administration. ONTO and MU I bought when they were at much lower valuations. ONTO has a lot of cash and little debt so I am confident in their ability to expand their business, but again they have been a burden since deepseek and the new admin. I dont want to be too reactive, but if equities are down on the year with this new admin I'd want to make sure my risk is effectively managed.
I'm a bit iffy on this spend after Deepseek. Not sure about how aggressively that AI spend will be in data centers in 2025. I think AI is moving back to software solutions versus just throwing chips at it. I have made some good gains on CLS, CRDO, POWL, STRL, AGX and will keep maintaining positions in the arms race, but realistically they aren't going to keep building data centers at this rate forever, the hardware will get more powerful and the software will get more efficient.
In addition to a great beat, they are maintaining their CapEx. This is huge. I bought the dip so heavily on AI adjacent plays that relied on increased CapEx: TSM, TSSI, ANET, STRL, and TLN. I was actually nervous today but I’m happy with what happened.
Man what an absolute demolition on infrastructure stocks like FLR, STRL, and PWR. Thoughts on entering here?
Well it's not really a quick recovery. A modest uptick after a gargantuan drop. And construction and infrastructure companies like AGX, POWL, MOD, STRL, CLS, CRDO because some or all of their business is in data centers. Some of these companies have a small minority of their business in AI data centers but got lumped into the carnage. I added to all because earnings are coming up but nervous about all these positions.
Lots of CLS, STRL, FIX, and VRT. I’m just glad I moved all of my options into shares. These companies will recover.
Just an annihilation in my portfolio today. CEG, GEV, PWR, STRL, AVGO, NVDA, all down by >10%. ONTO down 9%. AMD down 4.5%. I've made some defensive pivots as of late considering the sell off in the Healthcare and Consumer Defensive sectors but today is making me consider deploying my liquidity to buy back in further on these huge drawdowns. What are we thinking?
I've been trimming some of this stuff. STRL up about 770% in a little over two years, POWL up about 1,200% in the same time frame. FIX is up about 64% since September alone. The industrial AI beneficiary play may continue to play out, but people were talking about this on here early this year. I was talking about VST on here early this year and because it wasn't a tech play on AI the response was crickets. A few people were talking about the industrial beneficiaries early on. I don't think the theme is over but I don't think it's early; anything up as much as some of these names are up in the last couple of years isn't under the radar. Especially in this sort of a market where anything that's working in the manner that these names is is relentlessly piled into. Look at GEV, up 153% since spinning off in March. VRT one of the most popular examples. HMDPF another one up massively in the last couple years. The power/grid/data center industrial AI beneficiary theme has been written about and seemed to start to get coverage last Spring.
It's not a really covered stock to begin with. The last time any analyst gave any coverage on the stock was back in Feb of the year: [https://www.marketwatch.com/investing/stock/strl/analystestimates](https://www.marketwatch.com/investing/stock/strl/analystestimates) While the stock might have a PE 30, which is high, the PEG isn't the worst. So the company is growing EPS a ton. Since like 2021, the YoY EPS growth is 48%, 67%, 30%, and 41%. It's not just data center, but STRL growth is coming from them as well as other things in the e-infrastructure business, so it's also things like warehouses, power generation, manufacturing. It's also really profitable for the company: [https://www.strlco.com/wp-content/uploads/2024/11/Q3-2024-Earnings-Release-PP-Presentation-FINAL.pdf](https://www.strlco.com/wp-content/uploads/2024/11/Q3-2024-Earnings-Release-PP-Presentation-FINAL.pdf) On slide 8 you can see the revenue growth wasn't the biggest jump YoY, like going from 560M to 593M, but the gross profit is a huge. YoY it went from 91M to 130M. There has been a huge boom in manufacturing spending in the US due to the CHIPS, IRA and infrastructure bills. This chart really shows how much we have seen come into the space since 2022: [https://fred.stlouisfed.org/series/TLMFGCONS](https://fred.stlouisfed.org/series/TLMFGCONS)
I'm less bullish on STRL after Trump's victory for the reason you give: some of their valuation comes from expectations about infrastructure spending. Some members of the GOP want to 'rescind' everything remaining from the infrastructure bill. Hell, some want to cut the CHIPS Act which is why the Biden Administration is very quickly finalizing the money that has been awarded. With Musk and Ramaswamy leading this... 'DOGE'... you can expect both bills to be on the chopping block immediately.
STRL Is up over 180% over the last year, has a PE above 30, and is priced above analyst price target. Seems potentially overbought. But who knows when AI plays will run out of irrational exuberance?
I don't see them as bad businesses but I don't see them as data center buildout beneficiaries much, especially compared to where the money is being spent - VRT, for example. Or STRL. There are a number of industrial and power beneficiaries up 50-75-100%+ YTD.
I’ve been waiting for a MEDP to tank for months. Trimmed some STRL, HCC, and LRN gains to get the cash to pick up 15 shares of MEDP. Also eyeing AMAT or ONTO at these prices. Can’t afford both, but tempted to pick up one of them.
Great find. Their performance has been stellar over the past 5 years, would you recommend those who haven't invested to look into it now? I've found success with other infrastructure related stocks like PWR, STRL, and ROAD but nothing that's explicitly in the raw materials sector for infrastructure.
I've held it at different points and while its a great company to work for, I have found success holding different companies. STRL has been great for me and I held ROAD but sold out of it early.
Yeah, feels like a lot of dips have gotten up pretty quick this quarter. Like LSCC was crazy. There was another one recently that was down and ended up flat. STRL was down like 10 or 12% from earnings, but is now higher.
I looked into them briefly a few years ago when I doing a lot of research on the engineering and construction names. Never bought them, since I went with like FIX, STRL, and EME.
$STRL was down like 12% when the market opened yesterday, clawed back up, and now is up 8% today. Not as crazy of a swing, but still wild to see how people/algo are acting on some of these reports.
STRL giving up all those election gains. Aside from sales miss, earnings were great. Data center growth is 👌
$STRL * Revenue increased by 6% to $593.7 million. * Net income rose by 56% to $61.3 million. * EBITDA increased by 42% to $100.8 million. * Gross margin improved to 21.9%. * Operating cash flows totaled $322.8 million for the first nine months of 2024. * Cash and cash equivalents were $648.1 million. * Combined backlog was $2.37 billion. * E-Infrastructure Solutions segment saw 89% operating income growth. * Data center-related revenue increased by 90%. Mr. Cutillo continued, "In E-Infrastructure Solutions, we achieved 89% operating income growth as operating margins expanded over 1,100 basis points to reach 25.8%. This excellent margin profile reflects our shift toward large mission-critical projects, including data centers and manufacturing. E-Infrastructure revenue increased 4% in the quarter, driven by strength in data center work, which more than offset a tough revenue comparison in the manufacturing market and some continued softness in the small project market. Notably, data center-related revenue increased approximately 90% in the quarter and now represents over 50% of segment backlog. Transportation Solutions had another excellent quarter, delivering 18% revenue growth and 28% operating profit growth. The transportation markets are the strongest that they have been in our company's history, and we still have two and a half years remaining under the Infrastructure Investment and Jobs Act (IIJA) authorization. In Building Solutions, revenue declined 10% and operating profit declined 12%. Our residential concrete slab and plumbing businesses were impacted by a slowdown in the Dallas market in the quarter, as prospective homebuyers appear to be waiting on the sidelines in expectation of future interest rate reductions. We remain very bullish on the multi-year demand trends in our key geographies and anticipate a rebound in 2025." "We believe 2024 will be another excellent year for Sterling. Given our strong results through the third quarter and backlog position, we are raising our full year profitability guidance. The midpoint of our 2024 guidance would represent 10% revenue growth, 32% net income growth and 21% EBITDA growth," Mr. Cutillo concluded.
Just been my experience, but with stocks that are up like a huge amount in the YTD mark, tend to be pretty volatile in general. Like holding onto STRL, it just randomly will go down like more than 5% randomly. Same with POWL.
Also not bad to tax harvest some losers as well, if you need to off set any capital gains. I do that with my RSU's. Yeah, I've got some names like IESC and STRL that are up like 300% for me, they do a lot of the heavy lifting in terms of my success.
I've ridden STRL all year and didn't know they were involved in data centers 🤣🤣🤣 i only bought because of the infrastructure act
Watching ASC and STRL on Nov 6 STRL has been in an absolute tear. It's kind of expensive now, and dipped nearly 6% over the past week. Maybe people taking profits before an uncertain earnings? If they can show continued growth then this thing will keep crushing. YTD up 72%. Last earnings they reported a $2.5B backlog and massive earnings and revenue growth. I want to add a little to my position before earnings, as I'm bullish, but I feel that any slight disappointment will send the stock tumbling. They are a diversified construction company but growth is AI-driven, they are building data centers. So general bullish/bearish feelings on AI spending also a factor. All signs point to solid numbers and momentum continuing. ASC is so cheap. The dividend yield is now around a ridiculous 8% and PE is under 4. I'm in at $16.80 average and I thought that was cheap. It's under $14 now, people are really bearish because of low oil prices, and nervous about growth. Shipping companies are inherently limited by the number of ships. However if they announce great profits and maintain or increase their dividend, this stock is dirt cheap. Last earnings, revenue was up 32% and EBITDA up 67%. Hate that reporting on both is the day after the election, too many macro factors may come into play on both of these.