Why These 15 Construction Stocks Are Plunging in 2025

Page 8 of 14

7. Sterling Infrastructure Inc (NASDAQ:STRL)

Number of Hedge Fund Holders In Q4 2024: 28

Sterling Infrastructure Inc (NASDAQ:STRL) is an e-infrastructure, transportation, and building solutions company. This company specializes in large-scale infrastructure improvement projects for sectors like data centers, highways, residential construction, and more.

The stock is down significantly so far in 2025, as a significant portion of Sterling’s backlog is tied to data center projects and AI-related infrastructure.

In 2025, the general slowdown in AI-related spending and the dissipation of hype surrounding data centers has led to concerns about future revenue growth in its e-infrastructure segment.

The Building Solutions segment has faced headwinds due to affordability issues and high mortgage rates, particularly in markets like Dallas. In Q4 2024, this segment reported a 17% decline in operating income and a 3% drop in revenue.

Plus, prolonged higher interest rates have suppressed residential construction activity further. Despite expectations of rate cuts later in 2025, the current environment continues to negatively impact Sterling’s growth prospects.

The consensus price target of $185 implies 58.12% upside.

STRL stock is down 30.54% year-to-date.

Page 8 of 14