For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Emcor Group (EME) 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.
Emcor Group is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #14. 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. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for EME's full-year earnings has moved 6.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that EME has returned about 42% since the start of the calendar year. At the same time, Construction stocks have gained an average of 5.9%. As we can see, Emcor Group is performing better than its sector in the calendar year.
Frontdoor (FTDR) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24%.
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, Emcor Group 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, this group has gained an average of 41.7% so far this year, meaning that EME is performing better in terms of year-to-date returns.
Frontdoor, however, belongs to the Building Products - Miscellaneous industry. Currently, this 30-stock industry is ranked #106. The industry has moved +1.3% so far this year.
Emcor Group and Frontdoor could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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EMCOR Group, Inc. (EME): Free Stock Analysis Report Frontdoor Inc. (FTDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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