Are Construction Stocks Lagging Sterling Infrastructure, Inc. (STRL) This Year?
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Sterling Infrastructure (STRL) one of those stocks right now? 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.
Sterling Infrastructure is a member of our Construction group, which includes 90 different companies and currently sits at #11 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 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. Sterling Infrastructure is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for STRL's full-year earnings has moved 5.8% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, STRL has returned 10.5% so far this year. Meanwhile, stocks in the Construction group have lost about 4.1% on average. As we can see, Sterling Infrastructure is performing better than its sector in the calendar year.
Tutor Perini (TPC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 53.6%.
For Tutor Perini, the consensus EPS estimate for the current year has increased 8.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Sterling Infrastructure belongs to the Engineering - R and D Services industry, a group that includes 17 individual stocks and currently sits at #64 in the Zacks Industry Rank. This group has lost an average of 1.9% so far this year, so STRL is performing better in this area.
On the other hand, Tutor Perini belongs to the Building Products - Heavy Construction industry. This 10-stock industry is currently ranked #2. The industry has moved +2.8% year to date.
Investors interested in the Construction sector may want to keep a close eye on Sterling Infrastructure and Tutor Perini as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
