The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. D.R. Horton (DHI) 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? 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.
D.R. Horton 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. D.R. Horton is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DHI's full-year earnings has moved 3.4% 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, DHI has moved about 17.5% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 6.2% on a year-to-date basis. As we can see, D.R. Horton is performing better than its sector in the calendar year.
Another Construction stock, which has outperformed the sector so far this year, is Southland Holdings (SLND). The stock has returned 44% year-to-date.
The consensus estimate for Southland Holdings' current year EPS has increased 13.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, D.R. Horton is a member of the Building Products - Home Builders industry, which includes 17 individual companies and currently sits at #232 in the Zacks Industry Rank. On average, stocks in this group have gained 0.2% this year, meaning that DHI is performing better in terms of year-to-date returns.
Southland Holdings, however, belongs to the Building Products - Miscellaneous industry. Currently, this 30-stock industry is ranked #103. The industry has moved +1.4% so far this year.
D.R. Horton and Southland Holdings could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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D.R. Horton, Inc. (DHI): Free Stock Analysis Report Southland Holdings, Inc. (SLND): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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