Do You Believe the End Market Tailwinds Will Drive Sterling Infrastructure (STRL) For Continued Growth?
Next Century Growth Investors, LLC, an investment Management Company, released its “Small Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The equities market in 2024 saw mixed results in the second quarter. Small-cap indices generally posted negative results, whereas large-cap indices posted favorable results. The strategy returned (3.32)% net of fees in the quarter, compared to a (2.91)% return for the Russell 2000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
NCG Small Cap Strategy highlighted stocks like Sterling Infrastructure, Inc. (NASDAQ:STRL) in the second quarter 2024 investor letter. Headquartered in The Woodlands, Texas, Sterling Infrastructure, Inc. (NASDAQ:STRL) offers e-infrastructure, transportation, and building solutions. The one-month return of Sterling Infrastructure, Inc. (NASDAQ:STRL) was 8.20%, and its shares gained 43.79% of their value over the last 52 weeks. On August 29, 2024, Sterling Infrastructure, Inc. (NASDAQ:STRL) stock closed at $119.00 per share with a market capitalization of $3.657 billion.
NCG Small Cap Strategy stated the following regarding Sterling Infrastructure, Inc. (NASDAQ:STRL) in its Q2 2024 investor letter:
"Sterling Infrastructure, Inc. (NASDAQ:STRL) is a construction and infrastructure services provider for the buildout of data centers, manufacturing facilities, warehouses, transportation, and residential and commercial buildings. Over the years, the company improved their financial performance by shifting focus to higher growth end markets which allowed for better visibility and project economics. We believe revenue growth and margin expansion should continue as end market tailwinds persist."
A busy airport terminal, highlighting the company's strong transportation arm.
Sterling Infrastructure, Inc. (NASDAQ:STRL) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Sterling Infrastructure, Inc. (NASDAQ:STRL) at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the potential of Sterling Infrastructure, Inc. (NASDAQ:STRL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.