For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Legence (LGN) 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.
Legence is a member of the Construction sector. This group includes 93 individual stocks and currently holds a Zacks Sector Rank of #16. 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. Legence is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for LGN's full-year earnings has moved 28.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, LGN has moved about 6.9% on a year-to-date basis. At the same time, Construction stocks have gained an average of 5.5%. This means that Legence is outperforming the sector as a whole this year.
Another stock in the Construction sector, Orion Energy Systems, Inc. (OESX), has outperformed the sector so far this year. The stock's year-to-date return is 16.4%.
In Orion Energy Systems, Inc.'s case, the consensus EPS estimate for the current year increased 57.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Legence belongs to the Engineering - R and D Services industry, a group that includes 19 individual stocks and currently sits at #109 in the Zacks Industry Rank. Stocks in this group have gained about 11.3% so far this year, so LGN is slightly underperforming its industry this group in terms of year-to-date returns.
In contrast, Orion Energy Systems, Inc. falls under the Building Products - Lighting industry. Currently, this industry has 2 stocks and is ranked #23. Since the beginning of the year, the industry has moved +1.2%.
Investors with an interest in Construction stocks should continue to track Legence and Orion Energy Systems, Inc.. These stocks will be looking to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Legence Corp. (LGN): Free Stock Analysis Report Orion Energy Systems, Inc. (OESX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
