For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Emcor Group (EME) been one of those stocks this year? 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.
Emcor Group is one of 92 companies in the Construction group. The Construction group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 0.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that EME has returned about 71.2% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 6.1% on average. This shows that Emcor Group is outperforming its peers so far this year.
Another stock in the Construction sector, Comfort Systems (FIX), has outperformed the sector so far this year. The stock's year-to-date return is 138.3%.
For Comfort Systems, the consensus EPS estimate for the current year has increased 20.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual companies and currently sits at #95 in the Zacks Industry Rank. This group has gained an average of 57.8% so far this year, so EME is performing better in this area.
Comfort Systems, however, belongs to the Building Products - Air Conditioner and Heating industry. Currently, this 7-stock industry is ranked #209. The industry has moved +5.6% so far this year.
Investors with an interest in Construction stocks should continue to track Emcor Group and Comfort Systems. These stocks will be looking to continue their solid performance.
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EMCOR Group, Inc. (EME): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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