Are Construction Stocks Lagging TopBuild (BLD) This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is TopBuild (BLD) one of those stocks right now? 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 the Construction sector. This group includes 97 individual stocks and currently holds a Zacks Sector Rank of #8. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. TopBuild is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BLD's full-year earnings has moved 5.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that BLD has returned about 102.2% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 38.7% on average. This means that TopBuild is performing better than its sector in terms of year-to-date returns.
Emcor Group (EME) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 43.4%.
Over the past three months, Emcor Group's consensus EPS estimate for the current year has increased 12.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, TopBuild belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, this group has gained an average of 44% so far this year, meaning that BLD is performing better in terms of year-to-date returns.
In contrast, Emcor Group falls under the Building Products - Heavy Construction industry. Currently, this industry has 11 stocks and is ranked #197. Since the beginning of the year, the industry has moved +16.5%.
TopBuild and Emcor Group could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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