Are Construction Stocks Lagging Arcosa (ACA) 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 Arcosa (ACA) one of those stocks right now? 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.
Arcosa is one of 97 individual stocks in the Construction sector. Collectively, these companies sit at #2 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Arcosa is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ACA's full-year earnings has moved 5.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ACA has returned 28% so far this year. Meanwhile, the Construction sector has returned an average of 22.3% on a year-to-date basis. This shows that Arcosa is outperforming its peers so far this year.
Boise Cascade (BCC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 36.9%.
The consensus estimate for Boise Cascade's current year EPS has increased 32.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Arcosa belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual stocks and currently sits at #41 in the Zacks Industry Rank. On average, stocks in this group have gained 27.6% this year, meaning that ACA is performing better in terms of year-to-date returns.
Boise Cascade, however, belongs to the Building Products - Wood industry. Currently, this 12-stock industry is ranked #175. The industry has moved +3.3% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Arcosa and Boise Cascade as they could maintain their solid performance.
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Arcosa, Inc. (ACA) : Free Stock Analysis Report
Boise Cascade, L.L.C. (BCC) : Free Stock Analysis Report
