The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Lennox International (LII) been one of those stocks this year? 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.
Lennox International is a member of the Construction sector. This group includes 93 individual stocks and currently holds a Zacks Sector Rank of #13. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Lennox International is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for LII's full-year earnings has moved 0.8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, LII has moved about 9.9% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 8.1% on average. This means that Lennox International is outperforming the sector as a whole this year.
Another stock in the Construction sector, Masco (MAS), has outperformed the sector so far this year. The stock's year-to-date return is 22.1%.
The consensus estimate for Masco's current year EPS has increased 1.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Lennox International belongs to the Building Products - Air Conditioner and Heating industry, which includes 9 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, this group has gained an average of 35.3% so far this year, meaning that LII is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Masco falls under the Building Products - Miscellaneous industry. Currently, this industry has 34 stocks and is ranked #100. Since the beginning of the year, the industry has moved -0.8%.
Lennox International and Masco could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Lennox International, Inc. (LII): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).