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Is Quanex Building Products (NX) Outperforming Other Construction Stocks This Year?

Zacks Equity Research

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Quanex Building Products (NX) 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? One simple way to answer this question is to take a look at the year-to-date performance of NX and the rest of the Construction group's stocks.

Quanex Building Products is one of 101 companies in the Construction group. The Construction group currently sits at #2 within the Zacks Sector Rank. 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 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. NX is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for NX's full-year earnings has moved 8.24% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, NX has returned 38.41% so far this year. Meanwhile, stocks in the Construction group have gained about 38.12% on average. This means that Quanex Building Products is outperforming the sector as a whole this year.

Looking more specifically, NX belongs to the Building Products - Miscellaneous industry, which includes 25 individual stocks and currently sits at #106 in the Zacks Industry Rank. This group has gained an average of 38.34% so far this year, so NX is performing better in this area.

NX will likely be looking to continue its solid performance, so investors interested in Construction stocks should continue to pay close attention to the company.

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