Granite Construction Inc . (NYSE:GVA) shares soared to a 52-week high, reaching a price level of $73.04, marking a significant milestone for the infrastructure company. This peak reflects a robust 1-year change, with the stock price surging an impressive 81.11%. The company's performance over the past year has evidently resonated well with investors, as Granite Construction continues to capitalize on the growing demand for large-scale construction and engineering projects across the United States. The 52-week high serves as a testament to the company's strong market position and the positive sentiment surrounding its growth prospects.
In other recent news, Granite Construction Incorporated has secured a $38 million contract from the California Department of Transportation (Caltrans) to enhance the Highway 101 corridor in southern Santa Barbara. This project, which continues a five-year partnership with Caltrans and the Santa Barbara County Association of Governments, is expected to begin in September 2024 and complete in October 2026.
Additionally, Granite Construction reported a strong second quarter with a 22% increase in revenue in its Construction segment and an overall revenue surge of 20%. The company also noted a significant 60% rise in gross profit during this period. In a strategic move, Granite Construction announced the acquisition of Dickerson & Bowen, set to close in the third quarter, which will expand the company's Southeastern market presence.
These recent developments, along with a $5.6 billion committed and awarded projects portfolio, indicate the potential for continued organic growth. Granite Construction has also maintained its adjusted EBITDA margin guidance for 2024. As part of its future plans, the company intends to increase disclosures around the Materials business in 2025 for better financial visibility and provide future targets for 2025, 2026, and 2027 in the upcoming third quarter.
InvestingPro Insights
Granite Construction Inc. (GVA) has demonstrated noteworthy financial performance recently, a fact that is echoed by the company's share price touching a new 52-week high. According to InvestingPro data, Granite Construction boasts a market capitalization of $3.17 billion, reflecting the significant scale of the company within the infrastructure sector. The firm's revenue has seen a healthy increase, with a growth rate of 16.84% over the last twelve months as of Q2 2024, underlining the strong demand for its services. Additionally, the company has experienced a quarterly revenue growth of 20.47% in Q2 2024, signaling robust short-term business expansion.
An InvestingPro Tip highlights that analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial future. Furthermore, Granite Construction has maintained dividend payments for 35 consecutive years, showcasing a commitment to returning value to shareholders amidst its growth. For investors seeking more detailed analyses and additional InvestingPro Tips, there are 15 more listed on the InvestingPro platform, which can provide further insights into Granite Construction's financial health and stock performance.
With a P/E ratio of 35.52 and a more attractive adjusted P/E ratio of 33.17 for the last twelve months as of Q2 2024, investors may find the stock's valuation appealing relative to its near-term earnings growth. The PEG ratio, which stands at a low 0.54, suggests that the stock may be undervalued when factoring in its growth rate. This combination of solid financial metrics and favorable analyst expectations contributes to the optimistic investor sentiment that has propelled the stock to its current highs.
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