Back to top

Image: Bigstock

Is Granite Construction (GVA) Stock Outpacing Its Construction Peers This Year?

Read MoreHide Full Article

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Granite Construction (GVA - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Granite Construction is a member of our Construction group, which includes 91 different companies and currently sits at #6 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Granite Construction is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for GVA's full-year earnings has moved 10.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, GVA has returned 35.6% so far this year. At the same time, Construction stocks have gained an average of 11.5%. This means that Granite Construction is outperforming the sector as a whole this year.

KB Home (KBH - 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 28.5%.

Over the past three months, KB Home's consensus EPS estimate for the current year has increased 4.7%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Granite Construction belongs to the Building Products - Heavy Construction industry, a group that includes 10 individual companies and currently sits at #69 in the Zacks Industry Rank. On average, stocks in this group have gained 49.9% this year, meaning that GVA is slightly underperforming its industry in terms of year-to-date returns.

KB Home, however, belongs to the Building Products - Home Builders industry. Currently, this 17-stock industry is ranked #19. The industry has moved +15.8% so far this year.

Investors interested in the Construction sector may want to keep a close eye on Granite Construction and KB Home as they attempt to continue their solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


KB Home (KBH) - free report >>

Granite Construction Incorporated (GVA) - free report >>

Published in