Alert: Rating Downgrade (4/12/24)-Granite Construction Inc. (NYSE: GVA).

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Stock Rating Downgrade

Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for Granite Construction Inc. (NYSE: GVA) weakened of late. GVA’s current Value Trend Rating is C and the prior Rating was B. Details supporting this lower rating are included in our next report.

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Recent Price Action

Granite Construction Inc. (NYSE: GVA) stock declined slightly by -0.4% on 4/12/24. The stock closed at $55.34. However, this decline was accompanied by below average trading volume at 80% of normal. The stock has been exceptionally strong relative to the market over the last nine months but has declined -1.5% during the last week.

Current PriceTarget Research Rating

GVA is expected to continue to be a major Value Builder reflecting capital returns that are forecasted to exceed the cost of capital.

Granite Construction has a current Value Trend Rating of C (High Neutral). The Value Trend Rating reflects very contradictory signals from PTR’s two proprietary measures of a stock’s attractiveness. Granite Construction has a slightly negative Appreciation Score of 32 but a very high Power Rating of 93, leading to the High Neutral Value Trend Rating.

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