The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SPX Technologies (SPXC) 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.
SPX Technologies is one of 92 individual stocks in the Construction sector. Collectively, these companies sit at #16 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. SPX Technologies is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for SPXC's full-year earnings has moved 1.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, SPXC has moved about 20.8% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 15.7% on a year-to-date basis. This shows that SPX Technologies is outperforming its peers so far this year.
One other Construction stock that has outperformed the sector so far this year is UFP Industries (UFPI). The stock is up 22.8% year-to-date.
For UFP Industries, 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).
Looking more specifically, SPX Technologies belongs to the Building Products - Air Conditioner and Heating industry, which includes 7 individual stocks and currently sits at #207 in the Zacks Industry Rank. On average, stocks in this group have gained 27.9% this year, meaning that SPXC is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, UFP Industries belongs to the Building Products - Wood industry. This 10-stock industry is currently ranked #175. The industry has moved +17.3% year to date.
Investors with an interest in Construction stocks should continue to track SPX Technologies and UFP Industries. These stocks will be looking to continue their solid performance.
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SPX Technologies, Inc. (SPXC): Free Stock Analysis Report UFP Industries, Inc. (UFPI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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