The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. SPX Technologies (SPXC) 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.
SPX Technologies is a member of our Construction group, which includes 88 different companies and currently sits at #15 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. SPX Technologies is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SPXC's full-year earnings has moved 3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that SPXC has returned about 17% since the start of the calendar year. At the same time, Construction stocks have gained an average of 13.5%. This shows that SPX Technologies is outperforming its peers so far this year.
Simpson Manufacturing (SSD) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.6%.
Over the past three months, Simpson Manufacturing's consensus EPS estimate for the current year has increased 2.2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, SPX Technologies belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 7 individual stocks and currently sits at #31 in the Zacks Industry Rank. On average, this group has gained an average of 40.6% so far this year, meaning that SPXC is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Simpson Manufacturing falls under the Building Products - Miscellaneous industry. Currently, this industry has 33 stocks and is ranked #185. Since the beginning of the year, the industry has moved +0.2%.
Investors interested in the Construction sector may want to keep a close eye on SPX Technologies and Simpson Manufacturing as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).