NV5 Holdings stock hits 52-week low at $88.18 amid market shifts By Investing.com

NV5 Holdings Inc. (NASDAQ:), a provider of professional and technical engineering and consulting solutions, has seen its stock price touch a 52-week low, dipping to $88.18. This latest price movement reflects a broader trend observed over the past year, with the company’s stock experiencing an overall decline of 8.43%. Investors are closely monitoring NV5 Holdings as it navigates through the dynamic market conditions that have impacted its stock value, leading to this new 52-week low benchmark. The company’s performance and strategic decisions in the coming quarters will be critical in determining the potential for recovery or further declines in its stock price.

In other recent news, NV5 Global Inc. has made significant strides in its operations. The company recently announced the acquisition of the California Water Resources Group from Weston Solutions, a move aimed at enhancing NV5’s water resources capabilities and broadening its client base in environmental regulatory compliance services. This acquisition is part of NV5’s strategic expansion in the water resources sector and is expected to be immediately accretive to NV5’s earnings with revenue recognition anticipated by the late third quarter of 2024.

On the financial front, NV5 Global Inc. reported a successful second quarter in 2024, projecting strong growth and targeting $400 million in data center revenue. The company’s backlog has expanded to $877 million, suggesting robust demand for their services across the Infrastructure, Geospatial, and Buildings & Technology segments. The company also raised its full-year revenue guidance to between $944 million and $950 million, aiming to achieve a run rate revenue of $1 billion by the end of 2024.

These recent developments reflect the company’s strong organic growth and a 9% increase in backlog over the same quarter in the previous year. NV5 is optimistic about future growth, with plans for acquisitions to strengthen its segments and expand its client base in the transportation and water sectors. However, future acquisitions are not included in the current guidance, indicating a conservative approach. Despite this, NV5 is experiencing strong demand in its Geospatial and Buildings & Technology segments and has won master services agreements that promise future growth beyond the next 12 months.

InvestingPro Insights

In light of NV5 Holdings Inc.’s (NVEE) recent stock performance, reaching a 52-week low, a closer look at some key metrics and insights from InvestingPro could provide investors with a deeper understanding of the company’s position. With a market capitalization of $1.45 billion and a reported gross profit margin of 50.88% for the last twelve months as of Q2 2024, NV5 Holdings demonstrates an impressive ability to retain earnings relative to its revenue. Despite the stock’s decline, the company’s gross profit margin is a testament to its operational efficiency.

InvestingPro Tips highlight that the stock is currently in oversold territory according to the Relative Strength Index (RSI), which could suggest a potential rebound opportunity for investors. Additionally, the company’s liquid assets surpass its short-term obligations, indicating a solid liquidity position that could help weather financial uncertainties. However, it is worth noting that four analysts have revised their earnings estimates downwards for the upcoming period, which may be a factor for investors to consider.

For those looking to delve deeper into NV5 Holdings Inc.’s financial health and future prospects, InvestingPro offers additional insights and tips, with a total of 11 InvestingPro Tips available at https://www.investing.com/pro/NVEE. These tips provide a comprehensive analysis that could be invaluable in making informed investment decisions.

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