The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dycom Industries (DY) 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.
Dycom Industries is one of 88 companies in the Construction group. The Construction group currently sits at #14 within 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DY's full-year earnings has moved 4.2% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, DY has moved about 48.1% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 7% on a year-to-date basis. 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 Sterling Infrastructure (STRL). The stock is up 86.1% year-to-date.
For Sterling Infrastructure, the consensus EPS estimate for the current year has increased 12.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual stocks and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 34.5% this year, meaning that DY is performing better in terms of year-to-date returns.
On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 16-stock industry is currently ranked #95. The industry has moved +12.3% year to date.
Dycom Industries and Sterling Infrastructure could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dycom Industries, Inc. (DY): Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
