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. Is Construction Partners (ROAD) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Construction Partners is one of 97 companies in the Construction group. The Construction group currently sits at #9 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 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 #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for ROAD's full-year earnings has moved 9.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that ROAD has returned about 61.6% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 33.1% on average. This means that Construction Partners is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is Sterling Infrastructure (STRL). The stock has returned 99.4% year-to-date.
Over the past three months, Sterling Infrastructure's consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #2 (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 #55 in the Zacks Industry Rank. On average, stocks in this group have gained 38% this year, meaning that ROAD is performing better in terms of year-to-date returns.
In contrast, Sterling Infrastructure falls under the Engineering - R and D Services industry. Currently, this industry has 21 stocks and is ranked #65. Since the beginning of the year, the industry has moved +20.4%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Construction Partners and Sterling Infrastructure as they could maintain their solid performance.
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Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
