Artificial intelligence (AI) continues to dominate the investment landscape, with companies like Nvidia, Microsoft, and Meta Platforms being sought after by the best mutual funds. However, amidst this surge in AI stocks, the building sector is also making waves, as evidenced by the inclusion of Granite Construction on this month’s list of new buys by top funds.
Granite Construction, often referred to as “America’s Infrastructure Company,” is a prominent player in the construction and construction materials industry in the U.S. With a focus on transportation, water infrastructure, and mineral exploration markets, the Watsonville, California-based firm offers a wide range of services. Like Nvidia and Meta Platforms, Granite Construction boasts a remarkable 99 Composite Rating, outperforming 99% of all stocks in crucial stock-picking factors.
Market analysts predict a significant 39% growth in earnings for Granite Construction, with an expected earning per share of $4.39 this year. This forecast indicates a second consecutive quarter of accelerating growth for the company. After experiencing quarterly slowdowns in 2022, Granite Construction has recently seen three quarters of increasing revenue. In the fourth quarter, the company reported $933.7 million in sales, marking an 18% year-over-year gain.
In terms of stock performance, Granite Construction has been building on its breakout move. After forming a double bottom base in 2023, the company established an early stage cup pattern in the first quarter of this year. Granite Construction cleared the new 52.24 buy point in early March and has since climbed towards the top of the buy zone, which extends up to 5% above the initial entry. As of now, the stock is within buy range, 4% above the initial entry.
While Granite Construction is making its mark, Nvidia, Microsoft, and Meta Platforms are also proving their strength in the market. Nvidia, a leading AI company, recently reached an all-time high and remains close to the 900 mark. Microsoft, a technological giant, continues to build on its most recent breakout, finding support at the 21-day and 50-day lines. Meta Platforms (formerly known as Facebook) is hovering around the 500 level, supported by its 21-day exponential moving average.
In conclusion, the rise of artificial intelligence is undeniable, and companies like Nvidia, Microsoft, and Meta Platforms are at the forefront of this revolution. However, it is important to note that the building sector, as exemplified by Granite Construction, is also an area of interest for top funds. With their impressive growth prospects and solid performance, these companies continue to capture the attention of investors in the evolving landscape of AI and construction.
Frequently Asked Questions (FAQ)
What is artificial intelligence (AI)?
Artificial intelligence refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It involves the creation of computer systems capable of performing tasks that would usually require human intelligence, such as speech recognition, problem-solving, and decision-making.
Why are companies like Nvidia, Microsoft, and Meta Platforms popular among investors?
Nvidia, Microsoft, and Meta Platforms are highly regarded by investors due to their significant contributions to the field of artificial intelligence. These companies have developed advanced AI technologies, products, and services that have gained widespread adoption across various industries. As a result, they have demonstrated strong growth potential and exceptional performance in the stock market.
What is the building sector and why is it attracting investor interest?
The building sector encompasses companies involved in construction, infrastructure development, and related activities. It includes companies engaged in constructing residential, commercial, and industrial buildings, as well as infrastructure projects like roads, bridges, and utilities. The building sector is attracting investor interest due to increased government spending on infrastructure, urbanization, and growing construction demand globally.
Sources:
– [Investopedia: Artificial Intelligence (AI)](https://www.investopedia.com/terms/a/artificial-intelligence-ai.asp)
– [CNN Business: Innovative Tech Companies](https://www.cnn.com/business/tech)
– [Construction Dive: Building Sector Trends](https://www.constructiondive.com/trends)
What is artificial intelligence (AI)?
Artificial intelligence refers to the simulation of human intelligence in machines that are programmed to think and learn like humans. It involves the creation of computer systems capable of performing tasks that would usually require human intelligence, such as speech recognition, problem-solving, and decision-making.
Why are companies like Nvidia, Microsoft, and Meta Platforms popular among investors?
Nvidia, Microsoft, and Meta Platforms are highly regarded by investors due to their significant contributions to the field of artificial intelligence. These companies have developed advanced AI technologies, products, and services that have gained widespread adoption across various industries. As a result, they have demonstrated strong growth potential and exceptional performance in the stock market.
What is the building sector and why is it attracting investor interest?
The building sector encompasses companies involved in construction, infrastructure development, and related activities. It includes companies engaged in constructing residential, commercial, and industrial buildings, as well as infrastructure projects like roads, bridges, and utilities. The building sector is attracting investor interest due to increased government spending on infrastructure, urbanization, and growing construction demand globally.
Definitions for key terms and jargon used:
– Mutual funds: Investment vehicles that pool money from multiple investors to invest in various securities such as stocks, bonds, and other assets.
– Composite Rating: A rating system that evaluates a stock’s fundamental and technical factors to determine its overall strength.
– Earnings per share: A financial metric that represents the portion of a company’s profit allocated to each outstanding share of common stock.
– Sales: The total amount of revenue generated by a company from the sale of its goods or services.
– Stock performance: The evaluation of a stock’s price movement over a specific period of time.
– Breakout move: Refers to a significant and sustained price increase in a stock that surpasses a resistance level.
– Cup pattern: A chart pattern that resembles a cup with a “handle” portion. It is often seen as a bullish signal for a stock.
– Buy point: A specific price level at which an investor initiates a purchase of a stock.
– Entry: The point at which an investor enters or buys a stock.
– Buy range: The range of prices above the initial entry point where it is still considered advantageous to buy a stock.
– Support: A price level where buying activity is expected to outweigh selling activity, preventing further downside movement in a stock.
– Exponential moving average: A type of moving average that gives more weight to recent data points, reflecting the latest trends more accurately.
Suggested related links:
– Investopedia: Artificial Intelligence (AI)
– CNN Business: Innovative Tech Companies
– Construction Dive: Building Sector Trends
The source of the article is from the blog krama.net