Has Weyerhaeuser (WY) Outpaced Other Construction Stocks This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Weyerhaeuser (WY) 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 WY and the rest of the Construction group's stocks.
Weyerhaeuser is one of 100 companies in the Construction group. The Construction group currently sits at #1 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 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. WY is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for WY's full-year earnings has moved 93.05% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, WY has moved about 5.99% on a year-to-date basis. In comparison, Construction companies have returned an average of 12.41%. This means that Weyerhaeuser is performing better than its sector in terms of year-to-date returns.
Looking more specifically, WY belongs to the Building Products - Wood industry, a group that includes 12 individual stocks and currently sits at #18 in the Zacks Industry Rank. Stocks in this group have gained about 10.90% so far this year, so WY is slightly underperforming its industry this group in terms of year-to-date returns.
WY 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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