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Shares of Granite Construction Incorporated (NYSE:GVA – Get Free Report) have been given an average rating of “Hold” by the six brokerages that are covering the company, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokers that have covered the stock in the last year is $158.50.

Several equities analysts have recently weighed in on GVA shares. Oppenheimer lifted their target price on shares of Granite Construction from $170.00 to $180.00 and gave the stock an “outperform” rating in a research note on Friday, July 31st. Weiss Ratings lowered shares of Granite Construction from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, September 2nd. The Goldman Sachs Group lowered their target price on shares of Granite Construction from $139.00 to $119.00 and set a “sell” rating on the stock in a report on Friday, July 31st. Stephens initiated coverage on Granite Construction in a report on Friday, June 26th. They issued an “overweight” rating and a $180.00 price target for the company. Finally, Wall Street Zen cut Granite Construction from a “buy” rating to a “hold” rating in a research report on Saturday, July 18th.

Read Our Latest Research Report on GVA

Granite Construction Stock Performance NYSE GVA opened at $116.38 on Wednesday. The company has a market capitalization of $5.09 billion, a PE ratio of -27.00 and a beta of 1.32. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.94 and a current ratio of 1.01. Granite Construction has a 52-week low of $97.26 and a 52-week high of $162.08. The company has a 50-day simple moving average of $120.54 and a 200 day simple moving average of $128.49. Granite Construction (NYSE:GVA – Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The construction company reported $2.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.25 by ($0.09). The company had revenue of $1.46 billion for the quarter, compared to analysts’ expectations of $1.41 billion. Granite Construction had a positive return on equity of 27.83% and a negative net margin of 3.32%.The company’s revenue for the quarter was up 28.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.42 EPS. On average, research analysts predict that Granite Construction will post 6.36 EPS for the current year.

Granite Construction Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be paid a $0.13 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $0.52 annualized dividend and a yield of 0.4%. Granite Construction’s dividend payout ratio (DPR) is currently -12.06%.

Insider Buying and Selling In other news, Director Carlos M. Hernandez acquired 400 shares of the business’s stock in a transaction dated Thursday, August 6th. The stock was bought at an average cost of $123.99 per share, for a total transaction of $49,596.00. Following the completion of the transaction, the director owned 5,033 shares of the company’s stock, valued at $624,041.67. The trade was a 8.63% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.88% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows Large investors have recently bought and sold shares of the company. Root Financial Partners LLC increased its position in shares of Granite Construction by 30.9% in the first quarter. Root Financial Partners LLC now owns 381 shares of the construction company’s stock worth $46,000 after purchasing an additional 90 shares during the last quarter. Public Employees Retirement System of Ohio purchased a new stake in shares of Granite Construction during the 2nd quarter valued at $86,000. Clearstead Advisors LLC lifted its holdings in shares of Granite Construction by 168.2% during the 4th quarter. Clearstead Advisors LLC now owns 869 shares of the construction company’s stock worth $100,000 after acquiring an additional 545 shares during the last quarter. Parallel Advisors LLC grew its position in Granite Construction by 133.4% in the first quarter. Parallel Advisors LLC now owns 873 shares of the construction company’s stock worth $105,000 after acquiring an additional 499 shares in the last quarter. Finally, Global Retirement Partners LLC grew its position in Granite Construction by 303.2% in the fourth quarter. Global Retirement Partners LLC now owns 1,137 shares of the construction company’s stock worth $131,000 after acquiring an additional 855 shares in the last quarter.

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Granite Construction Incorporated (NYSE:GVA) is a civil infrastructure contractor that delivers construction and engineering services for public and private-sector customers. The company’s work includes the development and rehabilitation of transportation infrastructure such as highways, roads, bridges, airports, rail systems and mass-transit facilities.

Granite also provides services for water and wastewater systems, dams, utilities and other complex infrastructure projects. Its capabilities include project development, construction management, design-build delivery, general contracting, excavation, paving and related construction services.

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WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE:GVA) announced today that it has been awarded an approximately $31 million Early Works Grading Package by Hydrostor for its Willow Rock Energy Storage Center (WRESC) Project, located north of Rosamond in Kern County, California. The award will be included in Granite’s third quarter 2026 CAP.

This award aligns with Granite’s strategic focus on growing specialized private-sector work with clients that value construction expertise, collaboration, and problem-solving

Share The Willow Rock Energy Storage Center is a planned 500 MW Advanced Compressed Air Energy Storage (A-CAES) facility in the Mojave Desert, capable of powering more than 400,000 homes for eight hours.

Granite’s scope includes construction of early site infrastructure on the 89-acre project site, including a nine-acre pad to support the subsurface contractor’s work to drill and excavate a 1.3-million-cubic-yard cavern approximately 2,000 feet below the surface. Additional work includes offsite road improvements, onsite stormwater basins, and laydown areas for subsurface mining materials and topside EPCM contractors staging materials for construction of the four-turbine energy storage facility.

“This award aligns with Granite’s strategic focus on growing specialized private-sector work with clients that value construction expertise, collaboration, and problem-solving,” said Darryl Ebel, Granite Area Manager. “We are proud to bring our Bakersfield team’s site development experience to a project designed to support California’s long-term energy storage needs.”

“Hydrostor is thrilled to start pre-construction work on-site in Kern County for our flagship U.S. energy storage facility, which will support thousands of jobs locally and help to ensure a reliable California grid for decades to come. Partnering with an organization like Granite will help us set the stage for successful project delivery, as they bring their industry leading expertise to the site,” said Josh Rowan, Senior Vice President of Project Execution at Hydrostor.

Granite’s early works grading phase of the project began in July 2026 and is planned to conclude in March 2027.

For more information about the project, visit Hydrostor’s Willow Rock Energy Storage Center project page.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, X, Facebook, and Instagram.

Key Takeaways STRL is the better buy, backed by stronger growth, backlog momentum and estimate revisions.Mission-critical projects make up more than 90% of Sterling's E-Infrastructure backlog.Granite offers a lower valuation and record $7.2B CAP, but its growth outlook is less aggressive. Infrastructure spending remains a major growth driver for U.S. construction companies, supported by data center development, semiconductor manufacturing, transportation upgrades and federal infrastructure programs. Contractors with strong project pipelines, specialized capabilities and disciplined execution are particularly well positioned. Sterling Infrastructure (STRL - Free Report) and Granite Construction (GVA - Free Report) both benefit from these trends, but their business profiles differ.

Sterling has shifted toward high-growth mission-critical infrastructure, while Granite remains a diversified civil contractor and construction materials producer with significant exposure to public infrastructure.

Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.

The Case for Sterling StockSterling has transformed itself into a high-growth infrastructure platform focused on data centers, semiconductor fabrication, advanced manufacturing and mission-critical electrical work. First-quarter 2026 revenues surged 92% year over year, while adjusted earnings per share (EPS) climbed 120%. Adjusted EBITDA more than doubled, and margins expanded despite the integration of the recently acquired CEC business.

The E-Infrastructure Solutions segment remains Sterling’s primary growth engine. Segment revenues increased 174%, supported by strong organic growth and CEC’s contribution. Mission-critical projects accounted for more than 90% of E-Infrastructure backlog, highlighting Sterling’s growing exposure to large data center, manufacturing and semiconductor investments. The company is also gaining traction from cross-selling site development and electrical services, which should help increase project scope, improve execution and support margins.

Sterling’s backlog provides strong multiyear visibility. Signed backlog reached $3.8 billion, while the combined backlog increased to $5.15 billion. Including unsigned awards and high-probability future phases, management sees an opportunity pool approaching $6.5 billion. The first phase of a large semiconductor fabrication campus further strengthens its long-term growth potential, with additional project phases expected over several years.

The Stone Ridge acquisition adds another growth avenue. The deal expands Sterling’s site development capabilities across the Pacific Northwest and Texas and increases its exposure to data centers, mining and industrial infrastructure. Stone Ridge is expected to generate between $180 million and $200 million in full-year revenues with mid-teen EBITDA margins.

Sterling’s main risk is its premium valuation. The stock’s strong rally has raised expectations, meaning any slowdown in project awards, execution or data center spending could pressure its multiple. Building Solutions also remains exposed to weak residential affordability, while rapid expansion and acquisition integration add operational risks.

Nevertheless, Sterling’s growth, backlog visibility, margins and mission-critical market exposure provide a powerful investment case.

The Case for Granite StockGranite offers a more diversified and value-oriented construction investment. The company operates across transportation, federal infrastructure, private construction and construction materials, reducing its dependence on any single end market.

First-quarter revenues increased 30% year over year to $912 million, while adjusted EBITDA more than doubled. Construction segment revenues rose nearly 25%, supported by strong organic growth and acquired businesses. Granite also ended the quarter with record committed and awarded projects, or CAP, of $7.2 billion, an increase of $1.4 billion from the prior year.

Granite’s vertically integrated model is a key strength. Its materials operations supply aggregates and asphalt, supporting construction projects while providing exposure to pricing and volume growth. Materials revenues increased sharply in the first quarter, while gross profit and cash gross profit margins improved significantly. Recent acquisitions, including Warren Paving, Papich Construction and Kenny Seng Construction, have expanded Granite’s geographic presence and materials capabilities.

Granite is also expanding into attractive markets. Federal CAP reached $1.3 billion, including tactical infrastructure work, while management sees growing opportunities in rail facilities and mission-critical data center site development. The Kenny Seng acquisition strengthens Granite’s Utah platform and adds exposure to education, civil infrastructure and private-sector projects.

Following the strong quarter and recent project awards, Granite raised its 2026 revenue guidance between $5.2 billion and $5.4 billion and increased its adjusted EBITDA margin outlook. Improved project execution, SG&A leverage and materials performance should support earnings growth.

However, Granite’s growth outlook is less aggressive than Sterling’s. Traditional civil projects can be affected by weather, funding availability and execution delays. The company also reported a GAAP net loss in the first quarter, while higher interest costs and acquisition-related debt remain considerations.

Sterling Leads the Share Price RaceSterling shares have surged 108.5% year to date, substantially outperforming Granite’s 7.5% gain. Sterling has also outpaced the Zacks Construction sector’s 7.3% advance and the S&P 500’s 8.8% return.

STRL vs GVA Price Performance (YTD)

Image Source: Zacks Investment Research

Among peers, Comfort Systems USA (FIX - Free Report) and EMCOR Group (EME - Free Report) have also benefited from rising investments in AI data centers, electrical infrastructure and mission-critical construction. However, Sterling’s stock performance indicates particularly strong investor confidence in its earnings growth, expanding backlog and strategic positioning.

Granite’s performance is close to the broader construction sector, reflecting its steadier operating profile and more moderate earnings outlook.

Granite Offers Value, but Sterling’s Premium Is JustifiedSterling trades at 27.99X forward 12-month earnings, above Granite’s 15.8X and the Zacks Construction sector average of 20.49X.

STRL vs GVA Valuation (P/E F12M)

Image Source: Zacks Investment Research

The premium is more reasonable when compared with mission-critical infrastructure peers. FIX trades at 34.51X forward earnings, meaning Sterling remains less expensive despite its rapid growth in data center and advanced manufacturing projects. EME stock also commands a higher valuation than traditional civil contractors at 23.75X because of its exposure to electrical, mechanical and mission-critical construction markets.

Granite is clearly the cheaper stock and may appeal to value-focused investors. However, its discount reflects a slower growth profile, lower margins and greater exposure to conventional public infrastructure projects. Sterling’s premium is supported by stronger earnings growth and superior backlog momentum.

Sterling Has the Stronger Estimate TrendOver the past 60 days, the Zacks Consensus Estimate for Sterling’s 2026 EPS has increased to $19.12, while the 2027 estimate has risen to $25.83. Earnings are expected to grow 75.7% in 2026 on revenue growth of 59.2%. For 2027, EPS and revenues are projected to increase 35.1% and 29.1%, respectively.

STRL EPS Estimate Revision Trend

Image Source: Zacks Investment Research

Granite’s consensus estimate has remained unchanged over the past 30 days at $6.92 for 2026 and $8.61 for 2027. Its 2026 EPS is expected to increase 14%, accompanied by revenue growth of 20.2%. For 2027, EPS is projected to grow 24.4% on an 11.1% revenue increase.

GVA’s EPS Estimate Revision Trend

Image Source: Zacks Investment Research

Sterling, therefore, holds a clear advantage in both expected growth and positive estimate revisions.

Which Stock Is the Better Buy?Granite remains a solid infrastructure stock, supported by record CAP, a growing materials platform, strategic acquisitions and an attractive valuation. It appears suitable for investors seeking moderate growth at a lower earnings multiple.

Sterling, however, offers better upside potential. Its exposure to data centers, semiconductor facilities and mission-critical projects supports significantly stronger revenue and earnings growth. Rapidly expanding backlog, margin improvement, cross-selling opportunities and upward estimate revisions further strengthen the outlook.

Sterling’s Zacks Rank #1 (Strong Buy) also compares favorably with Granite’s Zacks Rank #3 (Hold). Despite its higher valuation, Sterling’s superior earnings momentum and secular growth exposure make it the better construction stock to buy now. You can see the complete list of today’s Zacks #1 Rank stocks here.

WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE:GVA) announced today that it has been awarded the West Davis Corridor (SR-177) expansion project by the Utah Department of Transportation (UDOT). The contract, valued at approximately $116.9 million, will be included in Granite’s second quarter 2026 CAP.

Located in West Point, Utah, the project will:

Extend the recently completed West Davis Corridor by approximately three miles Enhance mobility and connectivity for the northern Davis County area Improve traffic flows in the corridor Project scope includes construction of nine new bridges, two pedestrian crossings, approximately 70,000 tons of asphalt paving, and placement of more than one million cubic yards of borrow material.

“This project represents an important step in continuing the buildout of the West Davis Corridor, improving access and mobility for the growing northern Davis County region,” said Jason Klaumann, Granite Regional Vice President. “It aligns with our core strengths in structures, paving, and materials, and our home market strategy.”

Granite’s Wells Pit will supply 400,000 cubic yards of borrow and 350,000 tons of mechanically stabilized earth (MSE) fill and Granite’s West Haven AC Plant will provide 70,000 tons of Hot Mix Asphalt.

About Granite

Granite is America’s Infrastructure Company™. Incorporated since 1922, Granite (NYSE:GVA) is one of the largest diversified construction and construction materials companies in the United States as well as a full-suite civil construction provider. Granite’s Code of Conduct and strong Core Values guide the Company and its employees to uphold the highest ethical standards. Granite is an industry leader in safety and an award-winning firm in quality and sustainability. For more information, visit the Granite website, graniteconstruction.com, and connect with Granite on LinkedIn, Twitter, Facebook, and Instagram.