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Is EMCOR Group (EME) Stock Outpacing Its Construction Peers This Year?

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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Emcor Group (EME - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Emcor Group is one of 96 companies in the Construction group. The Construction group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 1.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, EME has returned 15.8% so far this year. At the same time, Construction stocks have gained an average of 13%. This means that Emcor Group is outperforming the sector as a whole this year.

One other Construction stock that has outperformed the sector so far this year is Comfort Systems (FIX - Free Report) . The stock is up 29.3% year-to-date.

The consensus estimate for Comfort Systems' current year EPS has increased 10.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 10 individual stocks and currently sits at #69 in the Zacks Industry Rank. On average, stocks in this group have gained 8.2% this year, meaning that EME is performing better in terms of year-to-date returns.

In contrast, Comfort Systems falls under the Building Products - Air Conditioner and Heating industry. Currently, this industry has 6 stocks and is ranked #4. Since the beginning of the year, the industry has moved +33.9%.

Emcor Group and Comfort Systems could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


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