For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Simpson Manufacturing (SSD) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Simpson Manufacturing is one of 88 companies in the Construction group. The Construction group currently sits at #9 within 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. Simpson Manufacturing is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SSD's full-year earnings has moved 1.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, SSD has moved about 8.2% on a year-to-date basis. At the same time, Construction stocks have gained an average of 3.8%. This means that Simpson Manufacturing is outperforming the sector as a whole this year.
Another stock in the Construction sector, Worthington Enterprises (WOR), has outperformed the sector so far this year. The stock's year-to-date return is 54.5%.
Over the past three months, Worthington Enterprises' consensus EPS estimate for the current year has increased 16.2%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Simpson Manufacturing belongs to the Building Products - Miscellaneous industry, a group that includes 30 individual companies and currently sits at #67 in the Zacks Industry Rank. On average, stocks in this group have lost 0.8% this year, meaning that SSD is performing better in terms of year-to-date returns.
Worthington Enterprises, however, belongs to the Building Products - Wood industry. Currently, this 11-stock industry is ranked #231. The industry has moved +8.5% so far this year.
Simpson Manufacturing and Worthington Enterprises could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Simpson Manufacturing Company, Inc. (SSD): Free Stock Analysis Report Worthington Enterprises, Inc. (WOR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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