The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Arcosa (ACA) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Arcosa 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 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. Arcosa is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for ACA's full-year earnings has moved 25% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ACA has returned about 36.5% since the start of the calendar year. In comparison, Construction companies have returned an average of 9.7%. This means that Arcosa is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Emcor Group (EME). The stock is up 23.4% year-to-date.
The consensus estimate for Emcor Group's current year EPS has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Arcosa belongs to the Building Products - Miscellaneous industry, a group that includes 34 individual stocks and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 0% so far this year, so ACA is performing better this group in terms of year-to-date returns.
In contrast, Emcor Group falls under the Building Products - Heavy Construction industry. Currently, this industry has 9 stocks and is ranked #48. Since the beginning of the year, the industry has moved +28.5%.
Going forward, investors interested in Construction stocks should continue to pay close attention to Arcosa and Emcor Group as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).