For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON) 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.
Aaon is one of 88 companies in the Construction group. The Construction group currently sits at #16 within 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for AAON's full-year earnings has moved 12.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, AAON has gained about 83.9% so far this year. Meanwhile, stocks in the Construction group have gained about 13.2% on average. This shows that Aaon is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Cardinal (CDNL). The stock has returned 114.6% year-to-date.
For Cardinal, the consensus EPS estimate for the current year has increased 11.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Aaon is a member of the Building Products - Air Conditioner and Heating industry, which includes 7 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 37.7% this year, meaning that AAON is performing better in terms of year-to-date returns.
Cardinal, however, belongs to the Engineering - R and D Services industry. Currently, this 22-stock industry is ranked #66. The industry has moved +37.9% so far this year.
Investors with an interest in Construction stocks should continue to track Aaon and Cardinal. These stocks will be looking to continue their solid performance.
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AAON, Inc. (AAON): Free Stock Analysis Report
Cardinal Infrastructure Group Inc. (CDNL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).