Are Construction Stocks Lagging KB Home (KBH) 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 KB Home (KBH) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
KB Home is one of 96 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 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. KB Home is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for KBH's full-year earnings has moved 10.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that KBH has returned about 63.3% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 24.7% on a year-to-date basis. This means that KB Home is performing better than its sector in terms of year-to-date returns.
Taylor Morrison Home (TMHC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 55.3%.
Over the past three months, Taylor Morrison Home's consensus EPS estimate for the current year has increased 5.1%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, KB Home is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #18 in the Zacks Industry Rank. On average, stocks in this group have gained 44.1% this year, meaning that KBH is performing better in terms of year-to-date returns. Taylor Morrison Home is also part of the same industry.
Investors with an interest in Construction stocks should continue to track KB Home and Taylor Morrison Home. These stocks will be looking to continue their solid performance.
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KB Home (KBH) : Free Stock Analysis Report
Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report
