GVA Should I Buy
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Granite Construction Inc (GVA) is not a strong buy for a beginner, long-term investor at this moment. While the company has shown strong financial growth and has a solid backlog of projects, the stock's recent price decline, neutral analyst ratings, and lack of significant trading signals suggest that it may not be the best time to invest. Additionally, the technical indicators do not provide a clear bullish signal, and the options data reflects a cautious sentiment.
The stock's MACD is positive but contracting, RSI is neutral at 56.862, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 121.574, and resistance is at 134.424. However, the stock has recently declined by 2.97% in regular trading, indicating some short-term weakness.
Granite Construction reported a historic $7 billion in committed projects, showcasing strong growth potential.
Q4 financials showed a 19.8% YoY revenue increase and a 25.42% YoY net income increase.
The company declared a consistent quarterly dividend, appealing to income-focused investors.
Analysts have a Neutral rating on the stock, citing high valuations and mixed price/cost signals.
The stock's recent price decline of 2.97% and a projected -4.71% return over the next month indicate potential short-term downside.
No significant hedge fund or insider trading activity to provide confidence.
In Q4 2025, revenue increased by 19.24% YoY to $1.165 billion, and net income rose by 25.42% YoY to $52.03 million. However, EPS dropped to 0 (-100% YoY), and gross margin declined to 14.39% (-6.74% YoY). While revenue and income growth are strong, margin contraction and EPS decline are concerns.
Analysts from Goldman Sachs maintain a Neutral rating with a price target of $124, citing high valuations and mixed signals in the Engineering & Construction sector. The company has transitioned away from high-risk projects but faces high expectations.
