For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Emcor Group (EME) 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.
Emcor Group 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for EME's full-year earnings has moved 12.3% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, EME has returned 19.7% so far this year. In comparison, Construction companies have returned an average of -3.7%. As we can see, Emcor Group is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Jiangsu Expressway Co. (JEXYY). The stock is up 13.2% year-to-date.
The consensus estimate for Jiangsu Expressway Co.'s current year EPS has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual companies and currently sits at #165 in the Zacks Industry Rank. This group has lost an average of 2.5% so far this year, so EME is performing better in this area. Jiangsu Expressway Co. is also part of the same industry.
Investors interested in the Construction sector may want to keep a close eye on Emcor Group and Jiangsu Expressway Co. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).