Is James Hardie Industries (JHX) Outperforming Other Construction Stocks This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. James Hardie (JHX) 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.
James Hardie is a member of the Construction sector. This group includes 97 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. James Hardie is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for JHX's full-year earnings has moved 3.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that JHX has returned about 62.9% since the start of the calendar year. In comparison, Construction companies have returned an average of 26.8%. This means that James Hardie is outperforming the sector as a whole this year.
One other Construction stock that has outperformed the sector so far this year is Lennar (LEN). The stock is up 35% year-to-date.
Over the past three months, Lennar's consensus EPS estimate for the current year has increased 8.2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, James Hardie belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual stocks and currently sits at #38 in the Zacks Industry Rank. On average, stocks in this group have gained 31.6% this year, meaning that JHX is performing better in terms of year-to-date returns.
In contrast, Lennar falls under the Building Products - Home Builders industry. Currently, this industry has 19 stocks and is ranked #58. Since the beginning of the year, the industry has moved +46.8%.
Investors with an interest in Construction stocks should continue to track James Hardie and Lennar. These stocks will be looking to continue their solid performance.
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James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
Lennar Corporation (LEN) : Free Stock Analysis Report
