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Is Beazer Homes USA (BZH) Outperforming 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. Is Beazer Homes (BZH - Free Report) one of those stocks right now? 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.
Beazer Homes is one of 96 companies in the Construction group. The Construction group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Beazer Homes is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for BZH's full-year earnings has moved 11% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, BZH has returned 63.2% so far this year. At the same time, Construction stocks have gained an average of 13.4%. This shows that Beazer Homes is outperforming its peers so far this year.
Cavco (CVCO - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.8%.
For Cavco, the consensus EPS estimate for the current year has increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Beazer Homes is a member of the Building Products - Home Builders industry, which includes 19 individual companies and currently sits at #8 in the Zacks Industry Rank. On average, this group has gained an average of 27.1% so far this year, meaning that BZH is performing better in terms of year-to-date returns.
On the other hand, Cavco belongs to the Building Products - Mobile Homes and RV Builders industry. This 5-stock industry is currently ranked #116. The industry has moved +15.7% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Beazer Homes and Cavco as they could maintain their solid performance.