Jim Cramer on Sterling Infrastructure: “They’ll Be Able to Get a Bigger piece of the data center pie”

Sterling Infrastructure, Inc. (NASDAQ:STRL) is one of the stocks that Jim Cramer expressed thoughts on. Cramer called it “scorching hot,” as he said:

“I’ve only covered Sterling in depth as a homework name. That was two years ago… But even if you bought the stock immediately after I covered it, you’d now have a 335% gain in just over 2 years. In fact, the stock’s up a staggering 262% from its post-Liberation Day lows. I mean, this thing is scorching hot… It’s the E-infrastructure division that’s been driving the stock, though. The business basically didn’t exist six or seven years ago yet now it accounts for half of Sterling’s revenue.

In the most recent quarter, the E-infrastructure division put up 29% revenue growth year-over-year, 57% operating income. As Sterling Infrastructure CEO put it, ‘This excellent margin profile reflects our shift towards large, mission-critical projects, including data centers and manufacturing, where our scale, superior execution, and track record of delivering projects on time are extremely valuable to our customers.’ And that sounds real good to me.

Now this summer, Sterling announced that it would be bolstering its E-infrastructure business with the acquisition of fellow Texas-based company CEC Facilities Group… This is exactly what you need to build data centers, and when you combine it with what Sterling already has, they’ll be able to get a bigger piece of the data center pie, which is gigantic to begin with. Management is very very bullish on this deal, and given the recent track record, I mean, how do we not believe them?”

A stock market data. Photo by Alesia Kozik on Pexels

Sterling Infrastructure, Inc. (NASDAQ:STRL) provides e-infrastructure, transportation, and building solutions, including site development for data centers, industrial facilities, and public works projects. In addition, the company offers concrete, plumbing, and surveying services for residential and commercial construction.

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Disclosure: None. This article is originally published at Insider Monkey.