Are Construction Stocks Lagging Sterling Infrastructure, Inc. (STRL) This Year?

·2 min read

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Sterling Infrastructure (STRL) 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.

Sterling Infrastructure is a member of our Construction group, which includes 98 different companies and currently sits at #9 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Sterling Infrastructure is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for STRL's full-year earnings has moved 1.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that STRL has returned about 18.2% since the start of the calendar year. At the same time, Construction stocks have gained an average of 8.6%. This means that Sterling Infrastructure is performing better than its sector in terms of year-to-date returns.

United Rentals (URI) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.1%.

For United Rentals, the consensus EPS estimate for the current year has increased 12.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Sterling Infrastructure is a member of the Engineering - R and D Services industry, which includes 21 individual companies and currently sits at #57 in the Zacks Industry Rank. This group has gained an average of 6.3% so far this year, so STRL is performing better in this area.

On the other hand, United Rentals belongs to the Building Products - Miscellaneous industry. This 27-stock industry is currently ranked #65. The industry has moved +13.4% year to date.

Investors interested in the Construction sector may want to keep a close eye on Sterling Infrastructure and United Rentals as they attempt to continue their solid performance.

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