For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Persimmon Plc (PSMMY) been one of those stocks this year? 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.
Persimmon Plc is a member of our Construction group, which includes 92 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Persimmon Plc is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for PSMMY's full-year earnings has moved 2.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, PSMMY has gained about 13.2% so far this year. Meanwhile, stocks in the Construction group have gained about 3.8% on average. This means that Persimmon Plc is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is Construction Partners (ROAD). The stock has returned 35.1% year-to-date.
In Construction Partners' case, the consensus EPS estimate for the current year increased 12.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Persimmon Plc belongs to the Building Products - Home Builders industry, a group that includes 17 individual stocks and currently sits at #210 in the Zacks Industry Rank. This group has lost an average of 2.4% so far this year, so PSMMY is performing better in this area.
On the other hand, Construction Partners belongs to the Building Products - Miscellaneous industry. This 33-stock industry is currently ranked #152. The industry has moved +4.9% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Persimmon Plc and Construction Partners as they could maintain their solid performance.
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Persimmon Plc (PSMMY): Free Stock Analysis Report Construction Partners, Inc. (ROAD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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