For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Armstrong World Industries (AWI) one of those stocks right now? 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.
Armstrong World Industries is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #11. 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 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. Armstrong World Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AWI's full-year earnings has moved 3.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that AWI has returned about 37.2% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 8.8% on average. This shows that Armstrong World Industries is outperforming its peers so far this year.
One other Construction stock that has outperformed the sector so far this year is Frontdoor (FTDR). The stock is up 8.9% year-to-date.
The consensus estimate for Frontdoor's current year EPS has increased 12.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Armstrong World Industries belongs to the Building Products - Miscellaneous industry, which includes 30 individual stocks and currently sits at #85 in the Zacks Industry Rank. On average, this group has gained an average of 9.3% so far this year, meaning that AWI is performing better in terms of year-to-date returns. Frontdoor is also part of the same industry.
Going forward, investors interested in Construction stocks should continue to pay close attention to Armstrong World Industries and Frontdoor as they could maintain their solid performance.
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Armstrong World Industries, Inc. (AWI): Free Stock Analysis Report Frontdoor Inc. (FTDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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