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? Let's take a closer look at the stock's year-to-date performance to find out.
Emcor Group is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #7. 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 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. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for EME's full-year earnings has moved 6.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, EME has gained about 136.3% so far this year. At the same time, Construction stocks have gained an average of 27.4%. This means that Emcor Group is outperforming the sector as a whole this year.
Frontdoor (FTDR) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 67%.
Over the past three months, Frontdoor's consensus EPS estimate for the current year has increased 12.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 10 individual companies and currently sits at #22 in the Zacks Industry Rank. This group has gained an average of 106.2% so far this year, so EME is performing better in this area.
In contrast, Frontdoor falls under the Building Products - Miscellaneous industry. Currently, this industry has 27 stocks and is ranked #167. Since the beginning of the year, the industry has moved +26.5%.
Investors interested in the Construction sector may want to keep a close eye on Emcor Group and Frontdoor as they attempt to continue their solid performance.
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