Are Construction Stocks Lagging EMCOR Group (EME) This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Emcor Group (EME) 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.
Emcor Group 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 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 12.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, EME has moved about 43.7% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 27.2% on average. This means that Emcor Group is outperforming the sector as a whole this year.
Another stock in the Construction sector, James Hardie (JHX), has outperformed the sector so far this year. The stock's year-to-date return is 58%.
Over the past three months, James Hardie's consensus EPS estimate for the current year has increased 18.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Emcor Group belongs to the Building Products - Heavy Construction industry, which includes 11 individual stocks and currently sits at #49 in the Zacks Industry Rank. On average, this group has gained an average of 22.1% so far this year, meaning that EME is performing better in terms of year-to-date returns.
James Hardie, however, belongs to the Building Products - Miscellaneous industry. Currently, this 27-stock industry is ranked #20. The industry has moved +32.1% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Emcor Group and James Hardie as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
