Is Babcock International Group (BCKIY) 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. Has Babcock International Group PLC (BCKIY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
Babcock International Group PLC is one of 98 individual stocks in the Construction sector. Collectively, these companies sit at #1 in 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. Babcock International Group PLC is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for BCKIY's full-year earnings has moved 4.4% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, BCKIY has returned 43% so far this year. At the same time, Construction stocks have gained an average of 10.9%. This means that Babcock International Group PLC is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is CRH (CRH). The stock has returned 22.5% year-to-date.
Over the past three months, CRH's consensus EPS estimate for the current year has increased 6.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Babcock International Group PLC belongs to the Engineering - R and D Services industry, a group that includes 21 individual stocks and currently sits at #41 in the Zacks Industry Rank. Stocks in this group have gained about 10.4% so far this year, so BCKIY is performing better this group in terms of year-to-date returns.
On the other hand, CRH belongs to the Building Products - Miscellaneous industry. This 29-stock industry is currently ranked #13. The industry has moved +14% year to date.
Babcock International Group PLC and CRH could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Babcock International Group PLC (BCKIY) : Free Stock Analysis Report
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