Are Construction Stocks Lagging EMCOR Group (EME) This Year?

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Emcor Group (EME) 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? 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.

Emcor Group is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #10 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 0.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, EME has returned 5.3% so far this year. Meanwhile, stocks in the Construction group have lost about 3.8% on average. This means that Emcor Group is performing better than its sector in terms of year-to-date returns.

Another Construction stock, which has outperformed the sector so far this year, is Alfa Laval AB Unsponsored ADR (ALFVY). The stock has returned 2% year-to-date.

For Alfa Laval AB Unsponsored ADR, the consensus EPS estimate for the current year has increased 12.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 10 individual stocks and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 5.8% so far this year, so EME is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, Alfa Laval AB Unsponsored ADR belongs to the Engineering - R and D Services industry. This 17-stock industry is currently ranked #71. The industry has moved +4.5% year to date.

Investors interested in the Construction sector may want to keep a close eye on Emcor Group and Alfa Laval AB Unsponsored ADR as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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