The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. MasTec (MTZ) 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? Let's take a closer look at the stock's year-to-date performance to find out.
MasTec 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 considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. MasTec is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for MTZ's full-year earnings has moved 1.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that MTZ has returned about 37.1% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 15.1% on average. This means that MasTec is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Construction Partners (ROAD). The stock is up 23.8% year-to-date.
The consensus estimate for Construction Partners' current year EPS has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, MasTec is a member of the Building Products - Heavy Construction industry, which includes 9 individual companies and currently sits at #153 in the Zacks Industry Rank. Stocks in this group have gained about 23.8% so far this year, so MTZ is performing better this group in terms of year-to-date returns.
In contrast, Construction Partners falls under the Building Products - Miscellaneous industry. Currently, this industry has 34 stocks and is ranked #179. Since the beginning of the year, the industry has moved +7.6%.
Investors with an interest in Construction stocks should continue to track MasTec and Construction Partners. These stocks will be looking to continue their solid performance.
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MasTec, Inc. (MTZ): 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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