Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Sterling Infrastructure (STRL) 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.
Sterling Infrastructure is one of 92 individual stocks in the Construction sector. Collectively, these companies sit 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 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. Sterling Infrastructure is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for STRL's full-year earnings has moved 11.8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, STRL has gained about 125.5% so far this year. In comparison, Construction companies have returned an average of 6.4%. This means that Sterling Infrastructure is outperforming the sector as a whole this year.
Vulcan Materials (VMC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 13.8%.
For Vulcan Materials, the consensus EPS estimate for the current year has increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Sterling Infrastructure is a member of the Engineering - R and D Services industry, which includes 15 individual companies and currently sits at #40 in the Zacks Industry Rank. Stocks in this group have gained about 14.7% so far this year, so STRL is performing better this group in terms of year-to-date returns.
Vulcan Materials, however, belongs to the Building Products - Concrete and Aggregates industry. Currently, this 6-stock industry is ranked #96. The industry has moved +19.1% so far this year.
Investors interested in the Construction sector may want to keep a close eye on Sterling Infrastructure and Vulcan Materials as they attempt to continue their solid performance.
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Sterling Infrastructure, Inc. (STRL): Free Stock Analysis Report Vulcan Materials Company (VMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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