Is AAON (AAON) Stock Outpacing Its Construction Peers This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Aaon (AAON) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Aaon is one of 99 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Aaon is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AAON's full-year earnings has moved 8.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, AAON has moved about 30.8% on a year-to-date basis. In comparison, Construction companies have returned an average of 30%. This means that Aaon is outperforming the sector as a whole this year.
Another stock in the Construction sector, Lennar (LEN), has outperformed the sector so far this year. The stock's year-to-date return is 30.5%.
Over the past three months, Lennar's consensus EPS estimate for the current year has increased 29.2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, which includes 6 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 51% so far this year, meaning that AAON is slightly underperforming its industry in terms of year-to-date returns.
Lennar, however, belongs to the Building Products - Home Builders industry. Currently, this 19-stock industry is ranked #4. The industry has moved +44.7% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Aaon and Lennar as they could maintain their solid performance.
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AAON, Inc. (AAON) : Free Stock Analysis Report
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