The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Frontdoor (FTDR) one of those stocks right now? 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.
Frontdoor is a member of our Construction group, which includes 92 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Frontdoor is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FTDR's full-year earnings has moved 8.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, FTDR has returned 16.9% so far this year. In comparison, Construction companies have returned an average of 14.1%. This means that Frontdoor is performing better than its sector in terms of year-to-date returns.
Advanced Drainage Systems (WMS) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.2%.
The consensus estimate for Advanced Drainage Systems' current year EPS has increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Frontdoor is a member of the Building Products - Miscellaneous industry, which includes 34 individual companies and currently sits at #191 in the Zacks Industry Rank. Stocks in this group have gained about 5.9% so far this year, so FTDR is performing better this group in terms of year-to-date returns. Advanced Drainage Systems is also part of the same industry.
Frontdoor and Advanced Drainage Systems could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Frontdoor Inc. (FTDR): Free Stock Analysis Report Advanced Drainage Systems, Inc. (WMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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