Is There Now An Opportunity In Granite Construction Incorporated (NYSE:GVA)?

Granite Construction Incorporated (NYSE:GVA), is not the largest company out there, but it saw significant share price movement during recent months on the NYSE, rising to highs of US$100 and falling to the lows of US$74.06. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Granite Construction's current trading price of US$74.06 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Granite Construction’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. See our latest analysis for Granite Construction Is Granite Construction Still Cheap? According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 25.46x is currently trading slightly above its industry peers’ ratio of 23.14x, which means if you buy Granite Construction today, you’d be paying a relatively reasonable price for it. And if you believe Granite Construction should be trading in this range, then there isn’t really any room for the share price grow beyond the levels of other industry peers over the long-term. So, is there another chance to buy low in the future? Given that Granite Construction’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility. What does the future of Granite Construction look like? NYSE:GVA Earnings and Revenue Growth March 9th 2025 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Granite Construction's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? It seems like the market has already priced in GVA’s positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at GVA? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you’ve been keeping an eye on GVA, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for GVA, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you want to dive deeper into Granite Construction, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of Granite Construction. If you are no longer interested in Granite Construction, you can use our free platform to see our list of over 50 other stocks with a high growth potential. If you're looking to trade Granite Construction, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers.With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account.Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer.Sponsored Content