Unfortunately for some shareholders, the Sterling Construction Company (NASDAQ:STRL) share price has dived 31% in the last thirty days. Even longer term holders have taken a real hit with the stock declining 23% in the last year.

All else being equal, a share price drop should make a stock more attractive to potential investors. In the long term, share prices tend to follow earnings per share, but in the short term prices bounce around in response to short term factors (which are not always obvious). The implication here is that long term investors have an opportunity when expectations of a company are too low. One way to gauge market expectations of a stock is to look at its Price to Earnings Ratio (PE Ratio). A high

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