Are Construction Stocks Lagging Eagle Materials (EXP) 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. Eagle Materials (EXP) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Eagle Materials is a member of the Construction sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #1. 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Eagle Materials is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for EXP's full-year earnings has moved 9.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, EXP has gained about 41.4% so far this year. Meanwhile, stocks in the Construction group have gained about 33.1% on average. This means that Eagle Materials is performing better than its sector in terms of year-to-date returns.
Another stock in the Construction sector, Lennar (LEN), has outperformed the sector so far this year. The stock's year-to-date return is 47.2%.
Over the past three months, Lennar's consensus EPS estimate for the current year has increased 28.7%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Eagle Materials belongs to the Building Products - Concrete and Aggregates industry, a group that includes 10 individual companies and currently sits at #6 in the Zacks Industry Rank. On average, stocks in this group have gained 38.4% this year, meaning that EXP is performing better in terms of year-to-date returns.
In contrast, Lennar falls under the Building Products - Home Builders industry. Currently, this industry has 19 stocks and is ranked #19. Since the beginning of the year, the industry has moved +56.4%.
Investors interested in the Construction sector may want to keep a close eye on Eagle Materials and Lennar as they attempt to continue their solid performance.
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