Are Construction Stocks Lagging TopBuild (BLD) 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. TopBuild (BLD) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
TopBuild is a member of our Construction group, which includes 97 different companies and currently sits at #4 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. TopBuild is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for BLD's full-year earnings has moved 12.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that BLD has returned about 46% since the start of the calendar year. In comparison, Construction companies have returned an average of 17%. This means that TopBuild is outperforming the sector as a whole this year.
One other Construction stock that has outperformed the sector so far this year is Emcor Group (EME). The stock is up 32.1% year-to-date.
The consensus estimate for Emcor Group's current year EPS has increased 11.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, TopBuild belongs to the Building Products - Miscellaneous industry, which includes 27 individual stocks and currently sits at #36 in the Zacks Industry Rank. This group has gained an average of 21.1% so far this year, so BLD is performing better in this area.
In contrast, Emcor Group falls under the Building Products - Heavy Construction industry. Currently, this industry has 11 stocks and is ranked #153. Since the beginning of the year, the industry has moved +6.2%.
Investors with an interest in Construction stocks should continue to track TopBuild and Emcor Group. These stocks will be looking to continue their solid performance.
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TopBuild Corp. (BLD) : Free Stock Analysis Report
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