Are Construction Stocks Lagging EMCOR Group (EME) This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. 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 98 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 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 15.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, EME has returned 55.4% so far this year. At the same time, Construction stocks have gained an average of 11%. This means that Emcor Group is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is Heidelberg Materials AG Unsponsored ADR (HDELY). The stock has returned 13.7% year-to-date.
In Heidelberg Materials AG Unsponsored ADR's case, the consensus EPS estimate for the current year increased 14.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 11 individual companies and currently sits at #147 in the Zacks Industry Rank. On average, this group has gained an average of 32.3% so far this year, meaning that EME is performing better in terms of year-to-date returns.
Heidelberg Materials AG Unsponsored ADR, however, belongs to the Building Products - Miscellaneous industry. Currently, this 29-stock industry is ranked #13. The industry has moved +14.7% so far this year.
Emcor Group and Heidelberg Materials AG Unsponsored ADR could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
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