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 89 individual stocks in the Construction sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Aaon is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, 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.
Our latest available data shows that AAON has returned about 75.3% since the start of the calendar year. In comparison, Construction companies have returned an average of 14.6%. This shows that Aaon is outperforming its peers so far this year.
Construction Partners (ROAD) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 16.9%.
In Construction Partners' case, the consensus EPS estimate for the current year increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 7 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 44.4% so far this year, so AAON is performing better this group in terms of year-to-date returns.
Construction Partners, however, belongs to the Building Products - Miscellaneous industry. Currently, this 33-stock industry is ranked #141. The industry has moved +2.2% so far this year.
Aaon and Construction Partners 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).