Granite Construction stock continues its long run. Coming out of the Covid crash in March 2020, Granite traded as low as 8.90 per share. Tuesday afternoon, Granite stock was selling for 82.97, a nearly tenfold price increase.
A number of catalysts are pushing its stock higher. Among them is the $1.2 trillion bipartisan omnibus Infrastructure Investment bill, signed into law in Nov. 2021. The U.S. chronic housing shortage is another. Ramping up the number of houses built requires building roads and other construction projects.
On Tuesday, the Relative Strength (RS) Rating for Granite stock climbed to a higher percentile, rising to 82, up from 79 the day before. It's a significant bump higher, showing that Granite stock outperformed 82% of all other stocks, regardless of industry, over the past year.
Additionally, decades of market research shows that stocks that go on to make the biggest gains typically have an RS Rating of at least 80 as they begin their biggest runs. Granite stock just joined that elite group.
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Granite boasts a best-possible 99 EPS Rating, showing that it's in the top 1% of companies for earnings growth in recent quarters and long-term. It owns an 89 Composite Rating, just shy of the 90 rating IBD Methodology investors look for when buying or adding stocks to a watchlist. Its C Accumulation/Distribution Rating indicates large funds are buying roughly as many shares as selling.
Granite Construction stock is building a consolidation with a 105.20 buy point. See if it can clear the breakout price in heavy trade. Note that it's a second-stage base. Such patterns can sometimes lead to significant gains, First- or second-stage consolidations are more likely to succeed than later stage bases.
Granite Construction reported a slim 1-cent profit on Feb. 13. However, it reversed forcefully from a 21-cent per share loss the same quarter a year earlier. And analyst consensus is for its EPS to surge 118% year over year to $1.66 this quarter, according to FactSet. Sales last quarter grew 4% to $699.6 million. The Street expects a 7% rise this quarter to $1.157 billion.
Granite Construction holds the No. 6 rank among its peers in the Building-Heavy Construction industry group. Argan, Quanta Services and Sterling Infrastructure are among the top five highly rated stocks in the group.
IBD's proprietary RS Rating measures technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
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