Yahoo Finance Is Howmet Aerospace (HWM) Outperforming Other Construction Stocks 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. Howmet (HWM) 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.
Howmet is a member of our Construction group, which includes 94 different companies and currently sits at #2 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. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for HWM's full-year earnings has moved 9.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, HWM has moved about 53% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 8.4% on average. This means that Howmet is performing better than its sector in terms of year-to-date returns.
Louisiana-Pacific (LPX) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 32.2%.
For Louisiana-Pacific, the consensus EPS estimate for the current year has increased 50.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Howmet belongs to the Engineering - R and D Services industry, which includes 21 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, this group has gained an average of 24% so far this year, meaning that HWM is performing better in terms of year-to-date returns.
On the other hand, Louisiana-Pacific belongs to the Building Products - Wood industry. This 10-stock industry is currently ranked #156. The industry has moved -4.5% year to date.
Investors with an interest in Construction stocks should continue to track Howmet and Louisiana-Pacific. These stocks will be looking to continue their solid performance.
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Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report
Louisiana-Pacific Corporation (LPX) : Free Stock Analysis Report
