Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. ChampionX (CHX) 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.
ChampionX is a member of our Construction group, which includes 88 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. ChampionX is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CHX's full-year earnings has moved 3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CHX has returned about 9.9% since the start of the calendar year. In comparison, Construction companies have returned an average of -9.9%. This shows that ChampionX is outperforming its peers so far this year.
Another stock in the Construction sector, Cavco (CVCO), has outperformed the sector so far this year. The stock's year-to-date return is 15.2%.
Over the past three months, Cavco's consensus EPS estimate for the current year has increased 21.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ChampionX belongs to the Engineering - R and D Services industry, a group that includes 16 individual stocks and currently sits at #39 in the Zacks Industry Rank. Stocks in this group have lost about 18.3% so far this year, so CHX is performing better this group in terms of year-to-date returns.
In contrast, Cavco falls under the Building Products - Mobile Homes and RV Builders industry. Currently, this industry has 5 stocks and is ranked #44. Since the beginning of the year, the industry has moved -2.6%.
Going forward, investors interested in Construction stocks should continue to pay close attention to ChampionX and Cavco as they could maintain their solid performance.
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ChampionX Corporation (CHX): Free Stock Analysis Report Cavco Industries, Inc. (CVCO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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