The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Dream Finders Homes Inc. (DFH) 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.
Dream Finders Homes Inc. is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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. Dream Finders Homes Inc. is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DFH's full-year earnings has moved 2.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DFH has gained about 5.4% so far this year. Meanwhile, the Construction sector has returned an average of -2.1% on a year-to-date basis. This means that Dream Finders Homes Inc. 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 Granite Construction (GVA). The stock is up 2.5% year-to-date.
In Granite Construction's case, the consensus EPS estimate for the current year increased 8.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Dream Finders Homes Inc. belongs to the Building Products - Home Builders industry, which includes 17 individual stocks and currently sits at #220 in the Zacks Industry Rank. This group has lost an average of 12% so far this year, so DFH is performing better in this area.
Granite Construction, however, belongs to the Building Products - Heavy Construction industry. Currently, this 10-stock industry is ranked #3. The industry has moved +3.7% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Dream Finders Homes Inc. and Granite Construction as they could maintain their solid performance.
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Dream Finders Homes, Inc. (DFH): Free Stock Analysis Report Granite Construction Incorporated (GVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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