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Is Armstrong World Industries (AWI) Stock Outpacing Its Construction Peers 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 Armstrong World Industries (AWI - 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.

Armstrong World Industries is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #8 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 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. Armstrong World Industries is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for AWI's full-year earnings has moved 1.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, AWI has returned 45.6% so far this year. At the same time, Construction stocks have gained an average of 14.7%. This means that Armstrong World Industries is performing better than its sector in terms of year-to-date returns.

Another Construction stock, which has outperformed the sector so far this year, is M-tron Industries, Inc. (MPTI - Free Report) . The stock has returned 37.6% year-to-date.

For M-tron Industries, Inc. the consensus EPS estimate for the current year has increased 9.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Armstrong World Industries belongs to the Building Products - Miscellaneous industry, which includes 27 individual stocks and currently sits at #164 in the Zacks Industry Rank. On average, this group has gained an average of 12.9% so far this year, meaning that AWI is performing better in terms of year-to-date returns.

In contrast, M-tron Industries, Inc. falls under the Engineering - R and D Services industry. Currently, this industry has 18 stocks and is ranked #136. Since the beginning of the year, the industry has moved +10.4%.

Armstrong World Industries and M-tron Industries, Inc. could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


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