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Is TopBuild (BLD) Outperforming Other Construction Stocks 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. Is TopBuild (BLD - 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.

TopBuild is a member of our Construction group, which includes 97 different companies and currently sits at #3 in 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 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. TopBuild is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for BLD's full-year earnings has moved 9.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that BLD has returned about 68.9% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 25.1% on a year-to-date basis. As we can see, TopBuild is performing better than its sector in the calendar year.

Emcor Group (EME - 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 41.9%.

Over the past three months, Emcor Group's consensus EPS estimate for the current year has increased 12.1%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, TopBuild belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual stocks and currently sits at #58 in the Zacks Industry Rank. On average, stocks in this group have gained 27.9% this year, meaning that BLD is performing better in terms of year-to-date returns.

In contrast, Emcor Group falls under the Building Products - Heavy Construction industry. Currently, this industry has 11 stocks and is ranked #92. Since the beginning of the year, the industry has moved +7.1%.

Investors with an interest in Construction stocks should continue to track TopBuild and Emcor Group. These stocks will be looking to continue their solid performance.


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