Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. 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? 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.
Dycom Industries is one of 92 companies in the Construction group. The Construction group currently sits at #15 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DY's full-year earnings has moved 4.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that DY has returned about 69.7% since the start of the calendar year. In comparison, Construction companies have returned an average of 5.1%. This shows that Dycom Industries is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Quanta Services (PWR). The stock has returned 38.4% year-to-date.
For Quanta Services, the consensus EPS estimate for the current year has increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Dycom Industries is a member of the Building Products - Heavy Construction industry, which includes 9 individual companies and currently sits at #31 in the Zacks Industry Rank. This group has gained an average of 46% so far this year, so DY is performing better in this area.
On the other hand, Quanta Services belongs to the Engineering - R and D Services industry. This 15-stock industry is currently ranked #79. The industry has moved +11.4% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Quanta Services as they could maintain their solid performance.
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Dycom Industries, Inc. (DY): Free Stock Analysis Report Quanta Services, Inc. (PWR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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