Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Construction Partners (ROAD) one of those stocks right now? 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.
Construction Partners is one of 90 individual stocks in the Construction sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Construction Partners is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ROAD's full-year earnings has moved 3.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ROAD has returned about 17.5% since the start of the calendar year. At the same time, Construction stocks have gained an average of 12.2%. This means that Construction Partners is outperforming the sector as a whole this year.
Shimmick Corporation (SHIM) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 79.1%.
In Shimmick Corporation's case, the consensus EPS estimate for the current year increased 81.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Construction Partners is a member of the Building Products - Miscellaneous industry, which includes 33 individual companies and currently sits at #165 in the Zacks Industry Rank. On average, stocks in this group have gained 4.4% this year, meaning that ROAD is performing better in terms of year-to-date returns.
Shimmick Corporation, however, belongs to the Engineering - R and D Services industry. Currently, this 22-stock industry is ranked #61. The industry has moved +30.6% so far this year.
Investors with an interest in Construction stocks should continue to track Construction Partners and Shimmick Corporation. These stocks will be looking to continue their solid performance.
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Construction Partners, Inc. (ROAD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).