For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Fluor (FLR) 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? 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.
Fluor is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #16. 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 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. Fluor is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FLR's full-year earnings has moved 2.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, FLR has moved about 29% on a year-to-date basis. In comparison, Construction companies have returned an average of -1%. This means that Fluor is outperforming the sector as a whole this year.
Legence (LGN) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 24%.
Over the past three months, Legence's consensus EPS estimate for the current year has increased 9.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Fluor belongs to the Engineering - R and D Services industry, which includes 22 individual stocks and currently sits at #190 in the Zacks Industry Rank. On average, stocks in this group have gained 18.8% this year, meaning that FLR is performing better in terms of year-to-date returns. Legence is also part of the same industry.
Investors with an interest in Construction stocks should continue to track Fluor and Legence. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).