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Is Sterling Infrastructure, Inc. (STRL) Stock Outpacing Its Construction Peers This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Sterling Infrastructure (STRL - Free Report) 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.

Sterling Infrastructure is a member of our Construction group, which includes 98 different companies and currently sits at #16 in the Zacks Sector Rank. 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 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. Sterling Infrastructure is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for STRL's full-year earnings has moved 2.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, STRL has moved about 13% on a year-to-date basis. In comparison, Construction companies have returned an average of 12.5%. This shows that Sterling Infrastructure is outperforming its peers so far this year.

Another stock in the Construction sector, United Rentals (URI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 28.5%.

For United Rentals, the consensus EPS estimate for the current year has increased 14.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Sterling Infrastructure belongs to the Engineering - R and D Services industry, a group that includes 21 individual stocks and currently sits at #62 in the Zacks Industry Rank. On average, this group has gained an average of 9.2% so far this year, meaning that STRL is performing better in terms of year-to-date returns.

In contrast, United Rentals falls under the Building Products - Miscellaneous industry. Currently, this industry has 27 stocks and is ranked #179. Since the beginning of the year, the industry has moved +17.9%.

Going forward, investors interested in Construction stocks should continue to pay close attention to Sterling Infrastructure and United Rentals as they could maintain their solid performance.


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