Sterling Construction (STRL) shares plunged 6.05% during Monday's intraday session, as investors locked in profits following a sharp rally in the prior sessions. The stock had surged 12.33% on July 30 and 5.69% on July 31, driven by strong earnings expectations, but the rapid run-up created significant selling pressure ahead of the company's quarterly earnings report, which was due after market close.

The broader construction and engineering sector also faced a pullback, with peers Comfort Systems USA down 3.13%, MasTec down 2.65%, and Quanta down 1.46%. This widespread decline among recently outperforming names added to the negative sentiment surrounding Sterling Construction. Market consensus forecasts quarterly revenue of $990 million, a 78.55% year-over-year increase, but the high expectations may have already been priced in, prompting some investors to reduce exposure before the earnings event.

Despite the intraday drop, the company's fundamentals remain strong, with expected EBIT of $202 million, up 133.53% year-over-year, and Oppenheimer holding an Outperform rating with a $950 price target. However, the immediate focus was on the profit-taking dynamics and the sector-wide retreat.