Are Construction Stocks Lagging PGT Innovations (PGTI) 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 PGT (PGTI) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
PGT is one of 97 individual stocks in the Construction sector. Collectively, these companies sit at #2 in 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. PGT is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PGTI's full-year earnings has moved 2.8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, PGTI has returned 66% so far this year. Meanwhile, stocks in the Construction group have gained about 14.3% on average. This shows that PGT is outperforming its peers so far this year.
Another stock in the Construction sector, Toll Brothers (TOL), has outperformed the sector so far this year. The stock's year-to-date return is 37.8%.
Over the past three months, Toll Brothers' consensus EPS estimate for the current year has increased 12.3%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, PGT belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #37 in the Zacks Industry Rank. On average, stocks in this group have gained 17.2% this year, meaning that PGTI is performing better in terms of year-to-date returns.
Toll Brothers, however, belongs to the Building Products - Home Builders industry. Currently, this 19-stock industry is ranked #35. The industry has moved +25.1% so far this year.
PGT and Toll Brothers could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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