For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Dycom Industries (DY) been one of those stocks this year? 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.
Dycom Industries is a member of the Construction sector. This group includes 87 individual stocks and currently holds a Zacks Sector Rank of #12. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DY's full-year earnings has moved 17.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, DY has gained about 51.8% so far this year. Meanwhile, stocks in the Construction group have gained about 7.2% on average. This means that Dycom Industries 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 Comfort Systems (FIX). The stock is up 63.4% year-to-date.
Over the past three months, Comfort Systems' consensus EPS estimate for the current year has increased 4.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Dycom Industries is a member of the Building Products - Heavy Construction industry, which includes 9 individual companies and currently sits at #8 in the Zacks Industry Rank. Stocks in this group have gained about 28.6% so far this year, so DY is performing better this group in terms of year-to-date returns.
Comfort Systems, however, belongs to the Building Products - Air Conditioner and Heating industry. Currently, this 6-stock industry is ranked #93. The industry has moved +18.3% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Comfort Systems as they could maintain their solid performance.
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Dycom Industries, Inc. (DY): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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