Are Construction Stocks Lagging Cavco Industries (CVCO) 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. Cavco (CVCO) 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? 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.
Cavco is one of 96 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Cavco is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CVCO's full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CVCO has returned about 28.4% since the start of the calendar year. In comparison, Construction companies have returned an average of 28.2%. As we can see, Cavco is performing better than its sector in the calendar year.
Eagle Materials (EXP) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 37%.
In Eagle Materials' case, the consensus EPS estimate for the current year increased 7.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cavco belongs to the Building Products - Mobile Homes and RV Builders industry, a group that includes 5 individual stocks and currently sits at #194 in the Zacks Industry Rank. This group has gained an average of 30.1% so far this year, so CVCO is slightly underperforming its industry in this area.
Eagle Materials, however, belongs to the Building Products - Concrete and Aggregates industry. Currently, this 9-stock industry is ranked #7. The industry has moved +35.9% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Cavco and Eagle Materials as they could maintain their solid performance.
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Cavco Industries, Inc. (CVCO) : Free Stock Analysis Report
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