Yahoo Finance Are Construction Stocks Lagging Sterling Infrastructure, Inc. (STRL) This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Sterling Infrastructure (STRL) 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? 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.
Sterling Infrastructure is one of 95 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. 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 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. Sterling Infrastructure is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for STRL's full-year earnings has moved 12.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, STRL has returned 44.8% so far this year. In comparison, Construction companies have returned an average of 11.4%. As we can see, Sterling Infrastructure is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Taylor Morrison Home (TMHC). The stock is up 12.1% year-to-date.
For Taylor Morrison Home, the consensus EPS estimate for the current year has increased 7.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Sterling Infrastructure belongs to the Engineering - R and D Services industry, a group that includes 21 individual companies and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have gained about 21.1% so far this year, so STRL is performing better this group in terms of year-to-date returns.
In contrast, Taylor Morrison Home falls under the Building Products - Home Builders industry. Currently, this industry has 16 stocks and is ranked #20. Since the beginning of the year, the industry has moved +7.1%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Sterling Infrastructure and Taylor Morrison Home as they could maintain their solid performance.
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