Are Construction Stocks Lagging Construction Partners (ROAD) 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 Construction Partners (ROAD) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Construction Partners is one of 99 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. Construction Partners is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ROAD's full-year earnings has moved 20.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, ROAD has gained about 30.1% so far this year. At the same time, Construction stocks have gained an average of 30.1%. This shows that Construction Partners is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Sterling Infrastructure (STRL). The stock has returned 144.2% year-to-date.
In Sterling Infrastructure's case, the consensus EPS estimate for the current year increased 16.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Construction Partners is a member of the Building Products - Miscellaneous industry, which includes 27 individual companies and currently sits at #21 in the Zacks Industry Rank. On average, stocks in this group have gained 32.5% this year, meaning that ROAD is slightly underperforming its industry in terms of year-to-date returns.
Sterling Infrastructure, however, belongs to the Engineering - R and D Services industry. Currently, this 20-stock industry is ranked #50. The industry has moved +25.1% so far this year.
Construction Partners and Sterling Infrastructure could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
