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Are Construction Stocks Lagging Construction Partners (ROAD) This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Construction Partners (ROAD - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Construction Partners is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Construction Partners is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for ROAD's full-year earnings has moved 1.4% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that ROAD has returned about 32.5% since the start of the calendar year. At the same time, Construction stocks have gained an average of 13.7%. As we can see, Construction Partners is performing better than its sector in the calendar year.

Another Construction stock, which has outperformed the sector so far this year, is Latham Group (SWIM - Free Report) . The stock has returned 119.8% year-to-date.

Over the past three months, Latham Group's consensus EPS estimate for the current year has increased 83.3%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Construction Partners belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, this group has gained an average of 10% so far this year, meaning that ROAD is performing better in terms of year-to-date returns. Latham Group is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to Construction Partners and Latham Group as they could maintain their solid performance.


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