Back to top

Image: Bigstock

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

Read MoreHide Full Article

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Construction Partners (ROAD - 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? 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.

Construction Partners is one of 88 companies in the Construction group. The Construction group currently sits at #7 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 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).

Over the past three months, the Zacks Consensus Estimate for ROAD's full-year earnings has moved 9.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, ROAD has moved about 132.4% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 29% on average. This means that Construction Partners is performing better than its sector in terms of year-to-date returns.

One other Construction stock that has outperformed the sector so far this year is Taylor Morrison Home (TMHC - Free Report) . The stock is up 38.7% year-to-date.

In Taylor Morrison Home's case, the consensus EPS estimate for the current year increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Construction Partners belongs to the Building Products - Miscellaneous industry, which includes 27 individual stocks and currently sits at #141 in the Zacks Industry Rank. Stocks in this group have gained about 27.4% so far this year, so ROAD is performing better this group in terms of year-to-date returns.

On the other hand, Taylor Morrison Home belongs to the Building Products - Home Builders industry. This 17-stock industry is currently ranked #128. The industry has moved +21.9% year to date.

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


See More Zacks Research for These Tickers


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


Taylor Morrison Home Corporation (TMHC) - free report >>

Construction Partners, Inc. (ROAD) - free report >>

Published in