GRANITE CONSTRUCTION INC (NYSE:GVA) Presents a Compelling Mix of Strong Growth and Technical Setup

Investors looking for companies with solid growth possibilities frequently encounter the difficulty of finding stocks that merge good basic financial condition with encouraging technical formations. One method that tackles this difficulty is filtering for stocks displaying strong growth measurements together with acceptable profitability and financial condition, while also indicating technical breakout patterns. This strategy intends to find companies set for future growth while beginning favorable technical momentum, possibly indicating market acknowledgment of their basic financial strengths. By combining both basic financial and technical examination, investors can find chances where good company results match with positive price movement.

Basic Financial Examination Summary

GRANITE CONSTRUCTION INC (NYSE:GVA) displays an interesting basic financial condition that matches well with growth investment standards. The company's total basic financial score of 6/10 shows a balanced review of important financial areas, with specific high points in growth and valuation measurements. This mixture indicates a company undergoing growth while staying fairly priced compared to its outlook.

The basic financial examination report for GVA shows a number of significant features:

• Good growth score of 7/10, pushed by notable earnings growth
• Appealing valuation score of 8/10, suggesting possible under-pricing
• Acceptable profitability and condition scores of 6/10 each, indicating balanced financial status

Growth Measurements and Results

Granite Construction shows considerable growth momentum that makes it a good growth candidate. The company's earnings results have been especially notable, with major growth in both recent times and longer-term averages. This growth path is important for growth investment, as companies need to show their capacity to increase earnings more quickly than market averages to support higher prices.

Important growth measurements consist of:

• Earnings Per Share growth of 61.71% during the last year
• Average EPS growth of 32.75% each year over recent years
• Revenue growth of 14.20% in the most recent year
• Projected future EPS growth of 21.70% each year

The company's growth outline is made stronger by speeding up revenue forecasts, with analysts predicting 9.43% yearly revenue growth going forward. This mixture of good past results and positive future expectations creates an interesting growth story that matches the filtering standards for solid growth stocks.

Valuation Review

Even with its growth features, Granite Construction seems fairly valued compared to industry competitors and wider market indicators. The valuation score of 8/10 indicates the stock could be trading at interesting levels relative to its growth possibility and financial results. This part is important for growth investors, as overpriced growth stocks often have greater risk if growth hopes are not achieved.

Valuation measurements display:

• P/E ratio of 17.50, lower than the S&P 500 average of 25.91
• Price/Forward Earnings ratio of 16.02, much lower than the S&P 500's 34.57
• Enterprise Value/EBITDA and Price/Free Cash Flow ratios more affordable than most industry competitors
• PEG ratio indicating fair payment for growth at acceptable levels

Financial Condition and Profitability

The company maintains sufficient financial condition with a score of 6/10, supported by acceptable cash availability and debt management measurements. This is significant for growth investors because financially sound companies are better prepared to pay for growth projects and handle economic slowdowns. The profitability score of 6/10 shows steady earnings production and getting better profit margins.

Financial strength indicators include:

• Current ratio of 1.57 and quick ratio of 1.45, indicating acceptable short-term cash availability
• Debt-to-FCF ratio of 2.40 years, showing good debt payment ability
• Altman-Z score of 3.39, suggesting low failure risk
• Return on Equity of 14.91%, doing better than many industry competitors

Technical Pattern Examination

The technical examination shows an engaging pattern even with the neutral total technical score of 2/10. The pattern score of 7/10 indicates the stock is creating a possibly favorable technical formation. Now trading between $97.26 and $107.45, the stock has been moving within this range with lower price swings, which often comes before major price changes.

Technical observations consist of:

• Several support levels between $81.64 and $102.28 giving possible downward protection
• Resistance area between $111.05 and $111.29 representing an important breakout level
• Lowered price swings during recent movement suggesting possible energy collecting
• Location in the higher part of its 52-week range indicating relative strength

The mixture of these technical elements with good basic financial growth creates a situation where any move above resistance could indicate market acknowledgment of the company's basic financial strengths, possibly leading to major price increases.

Investment Points

For investors using the growth stock with technical breakout plan, Granite Construction stands for an engaging example. The company's good basic financial growth outline, fair valuation, and forming technical pattern create circumstances that could lead to better performance if the technical breakout happens. The infrastructure concentration of the company matches present economic priorities, possibly providing support for continued growth.

The complete technical analysis report and basic financial analysis report give extra understanding for investors doing more detailed review.

Investors curious about finding more stocks that fit similar standards of good growth merged with encouraging technical patterns can investigate more filtering outcomes through our Strong Growth Stocks with Good Technical Setup Ratings filtering tool.

Disclaimer: This examination is given for information purposes only and does not form investment guidance, suggestion, or support of any security. Investors should do their own investigation and talk with financial consultants before making investment choices. Past results do not assure future outcomes, and all investments have risk including possible loss of original money.