For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Dycom Industries (DY) 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.
Dycom Industries is a member of our Construction group, which includes 88 different companies and currently sits at #16 in the Zacks Sector Rank. 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 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. Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DY's full-year earnings has moved 20.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, DY has gained about 44.5% so far this year. At the same time, Construction stocks have gained an average of 17.9%. This means that Dycom Industries is performing better than its sector in terms of year-to-date returns.
Orion Marine Group (ORN) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 65.1%.
The consensus estimate for Orion Marine Group's current year EPS has increased 12.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Dycom Industries is a member of the Building Products - Heavy Construction industry, which includes 8 individual companies and currently sits at #46 in the Zacks Industry Rank. On average, this group has gained an average of 39.7% so far this year, meaning that DY is performing better in terms of year-to-date returns. Orion Marine Group is also part of the same industry.
Dycom Industries and Orion Marine Group could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).