Is EMCOR Group (EME) 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. Emcor Group (EME) 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.
Emcor Group is one of 99 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for EME's full-year earnings has moved 13.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that EME has returned about 51.5% since the start of the calendar year. At the same time, Construction stocks have gained an average of 32.4%. This shows that Emcor Group is outperforming its peers so far this year.
Another stock in the Construction sector, James Hardie (JHX), has outperformed the sector so far this year. The stock's year-to-date return is 66.6%.
In James Hardie's case, the consensus EPS estimate for the current year increased 18.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Emcor Group is a member of the Building Products - Heavy Construction industry, which includes 11 individual companies and currently sits at #47 in the Zacks Industry Rank. On average, stocks in this group have gained 33.1% this year, meaning that EME is performing better in terms of year-to-date returns.
In contrast, James Hardie falls under the Building Products - Miscellaneous industry. Currently, this industry has 27 stocks and is ranked #28. Since the beginning of the year, the industry has moved +35.3%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Emcor Group and James Hardie as they could maintain their solid performance.
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EMCOR Group, Inc. (EME) : Free Stock Analysis Report
James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
