Flash Alert: Buy Sterling Construction

Flash Alert: Buy Sterling Construction

I am recommending that you buy shares of construction and infrastructure company Sterling Construction Co. (NSDQ: STRL) up to $28, as the stock looks poised to move higher.

A Building Company for the Times We Live In

Based in The Woodlands, Texas, just north of Houston, Sterling is a unique company because it’s in the right place at the right time.

Specifically, the “right place” is its area of operations: the Sun Belt, which includes Southern and Southwestern states. The growing population in these states, along with Sterling’s stout management team, puts the company in a solid position.

Sterling specializes in three areas:

  1. E-infrastructure: the design and building of data and e-commerce distribution centers, commercial warehousing, and energy-related sites
  2. Building solutions: residential and commercial concrete foundations, parking structures, etc.
  3. Transportation: highways, roads, bridges, airports, and water and waste management systems

Because the company provides services in geographic areas that need new infrastructure — as well as maintenance of that infrastructure — Sterling Construction is well positioned. As a result, its book of business is growing at a healthy clip.

Sterling’s Price Chart Looks Set to Pop

The stock looks poised to break out with favorable money flows — Accumulation Distribution (ADI) and On Balance Volume (OBV). It has good support in and around its 200-day moving average.

This may be a good stock to build a position in over time, especially with the potential market volatility expected to stem from the Federal Reserve’s meeting in Jackson Hole, Wyoming, on Thursday and Friday. I will have more details in my weekly update.

Stock Talk

Joe learning

Joe learning

Hi Joe. Are you suggesting a straight out buy of shares, or is there an options trade you are thinking about for Sterling?


Add New Comments

You must be logged in to post to Stock Talk