Is Altair Engineering (ALTR) Outperforming Other Construction Stocks 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. Altair Engineering (ALTR) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Altair Engineering is one of 96 companies in the Construction group. The Construction group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Altair Engineering is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ALTR's full-year earnings has moved 123.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ALTR has moved about 58.6% on a year-to-date basis. At the same time, Construction stocks have gained an average of 11%. This means that Altair Engineering is outperforming the sector as a whole this year.
Toll Brothers (TOL) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 20.3%.
The consensus estimate for Toll Brothers' current year EPS has increased 10.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Altair Engineering belongs to the Engineering - R and D Services industry, a group that includes 21 individual stocks and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 9.4% so far this year, meaning that ALTR is performing better in terms of year-to-date returns.
On the other hand, Toll Brothers belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #50. The industry has moved +18.6% year to date.
Investors with an interest in Construction stocks should continue to track Altair Engineering and Toll Brothers. These stocks will be looking to continue their solid performance.
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Altair Engineering Inc. (ALTR) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
