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Is Granite Construction (GVA) Outperforming Other Construction Stocks This Year?

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Granite Construction (GVA) one of those stocks right now? 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.

Granite Construction is a member of our Construction group, which includes 94 different companies and currently sits at #1 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 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. Granite Construction is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for GVA's full-year earnings has moved 11% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the latest available data, GVA has gained about 22.8% so far this year. Meanwhile, stocks in the Construction group have gained about 10% on average. This means that Granite Construction is outperforming the sector as a whole this year.

Another stock in the Construction sector, KB Home (KBH), has outperformed the sector so far this year. The stock's year-to-date return is 12.9%.

In KB Home's case, the consensus EPS estimate for the current year increased 5.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Granite Construction belongs to the Building Products - Heavy Construction industry, which includes 11 individual stocks and currently sits at #1 in the Zacks Industry Rank. Stocks in this group have gained about 62.7% so far this year, so GVA is slightly underperforming its industry this group in terms of year-to-date returns.

In contrast, KB Home falls under the Building Products - Home Builders industry. Currently, this industry has 16 stocks and is ranked #17. Since the beginning of the year, the industry has moved +3.8%.

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.

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Granite Construction Incorporated (GVA) : Free Stock Analysis Report

KB Home (KBH) : Free Stock Analysis Report

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Zacks Investment Research