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Is Dycom Industries (DY) Stock Outpacing Its Construction Peers This Year?

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The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Dycom Industries (DY - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Dycom Industries is a member of our Construction group, which includes 98 different companies and currently sits at #1 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DY's full-year earnings has moved 8.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, DY has gained about 23.4% so far this year. Meanwhile, the Construction sector has returned an average of 14.3% on a year-to-date basis. This shows that Dycom Industries is outperforming its peers so far this year.

Another stock in the Construction sector, Masco (MAS - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 16.7%.

In Masco's case, the consensus EPS estimate for the current year increased 3.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 11 individual companies and currently sits at #95 in the Zacks Industry Rank. On average, stocks in this group have gained 36.6% this year, meaning that DY is slightly underperforming its industry in terms of year-to-date returns.

In contrast, Masco falls under the Building Products - Miscellaneous industry. Currently, this industry has 29 stocks and is ranked #9. Since the beginning of the year, the industry has moved +17.5%.

Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Masco as they could maintain their solid performance.


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