The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Carrier Global (CARR) 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? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.
Carrier Global is a member of our Construction group, which includes 93 different companies and currently sits at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Carrier Global is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CARR's full-year earnings has moved 1.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that CARR has returned about 30% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 11.6% on average. This means that Carrier Global is outperforming the sector as a whole this year.
Sterling Infrastructure (STRL) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 120.2%.
The consensus estimate for Sterling Infrastructure's current year EPS has increased 43% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Carrier Global belongs to the Building Products - Air Conditioner and Heating industry, which includes 9 individual stocks and currently sits at #47 in the Zacks Industry Rank. On average, this group has gained an average of 37.1% so far this year, meaning that CARR is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 23-stock industry is currently ranked #73. The industry has moved +29% year to date.
Carrier Global and Sterling Infrastructure 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).