Is Eagle Materials (EXP) Stock Outpacing Its Construction Peers This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Eagle Materials (EXP) 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.
Eagle Materials is a member of the Construction sector. This group includes 98 individual stocks and currently holds a Zacks Sector Rank of #2. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Eagle Materials is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for EXP's full-year earnings has moved 0.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that EXP has returned about 19.5% since the start of the calendar year. At the same time, Construction stocks have gained an average of 3.3%. This shows that Eagle Materials is outperforming its peers so far this year.
One other Construction stock that has outperformed the sector so far this year is Taylor Morrison Home (TMHC). The stock is up 4.1% year-to-date.
In Taylor Morrison Home's case, the consensus EPS estimate for the current year increased 7.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Eagle Materials is a member of the Building Products - Concrete and Aggregates industry, which includes 9 individual companies and currently sits at #56 in the Zacks Industry Rank. This group has gained an average of 9.3% so far this year, so EXP is performing better in this area.
On the other hand, Taylor Morrison Home belongs to the Building Products - Home Builders industry. This 17-stock industry is currently ranked #19. The industry has moved +0.7% year to date.
Eagle Materials and Taylor Morrison Home could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Eagle Materials Inc (EXP) : Free Stock Analysis Report
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