Great Lakes Dredge & Dock (GLDD) Advances But Underperforms Market: Key Facts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 11 2024
0mins
Source: NASDAQ.COM
Stock Performance: Great Lakes Dredge & Dock (GLDD) closed at $9.44, up 0.53%, while analysts anticipate a significant earnings report with an expected EPS of $0.18, reflecting a 300% increase from the previous year.
Valuation Insights: GLDD is trading at a Forward P/E ratio of 11.74, lower than the industry average of 18.3, and has a PEG ratio of 0.34, indicating potential growth opportunities within the Building Products - Heavy Construction sector.
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Analyst Views on GLDD
Wall Street analysts forecast GLDD stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GLDD is 14.00 USD with a low forecast of 14.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 15.320
Low
14.00
Averages
14.00
High
14.00
Current: 15.320
Low
14.00
Averages
14.00
High
14.00
About GLDD
Great Lakes Dredge & Dock Corporation is a provider of dredging services. The Company is also engaged in developing offshore wind energy. It operates three types of dredging equipment: hopper dredges, hydraulic dredges, and mechanical dredges. Its dredging generally involves the enhancement or preservation of the navigability of waterways or the protection of shorelines through the removal or replenishment of soil, sand, or rock. Domestically, its work is generally performed in coastal waterways and deep-water ports. The United States dredging market consists of four primary types of work: capital, coastal protection, maintenance, and rivers and lakes. The Company's capital dredging consists primarily of port expansion projects. Its domestic dredging fleet is positioned on the East and Gulf Coasts, with a smaller number of vessels positioned on the West Coast, and with the rivers and lakes dredges on inland rivers and lakes. It comprises approximately 200 specialized vessels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Great Lakes Dredge & Dock (GLDD) Initiated at Overweight by J.P. Morgan with $20 Price Target
- Positive Market Outlook: J.P. Morgan initiated coverage on Great Lakes Dredge & Dock (GLDD) with an Overweight rating and a $20 year-end price target, indicating the company is entering a multi-year upcycle driven by record government infrastructure spending, which is expected to significantly boost stock prices.
- Strong Backlog: The company boasts a backlog exceeding $1 billion, providing strong revenue visibility into 2026, while transitioning towards higher-margin capital projects and disciplined cost management is set to enhance profitability further.
- Offshore Energy Expansion: Great Lakes' entry into offshore energy creates a new growth vertical, positioning the company to benefit from the global energy transition, with analysts expecting double-digit EPS growth ahead, reflecting an attractive risk/reward profile.
- Industry Leadership: J.P. Morgan analysts noted that as the company expands into marine services, robust market demand and operational momentum will support sustained revenue growth and margin expansion, further solidifying its leadership position in the industry.
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JPMorgan Sees Upside for Orion Group with 40% Price Target Increase
- Positive Market Outlook: JPMorgan analysts predict that Orion Group and Great Lakes Dredge & Dock will benefit from increased U.S. infrastructure spending, achieving double-digit earnings growth in the coming years, with a year-end price target of $16 for Orion implying over 40% upside from Wednesday's close.
- Operational Strengths: Following a site visit to Orion's Tampa office and Clearwater Marina project, the analyst highlighted the company's operational strengths and culture, which are expected to support sustained revenue growth and margin expansion, with projected revenue growth of 6% year-over-year to $896 million by 2026.
- Market Share and Competitiveness: As the largest dredging contractor in the U.S. with a 35% market share, Great Lakes Dredge & Dock's $1 billion backlog and approximately $194 million in pending awards provide strong revenue visibility for future growth, with the analyst noting the company will benefit from port deepening, coastal protection, and climate resilience projects.
- Diversification Strategy: Orion's concrete segment serves as a strategic growth engine beyond marine infrastructure, allowing the company to capitalize on megatrends such as AI-driven digital infrastructure, thereby enhancing long-term earnings resilience and growth potential.
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