For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Innodata Inc (INOD) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Innodata Inc 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 includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Innodata Inc is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for INOD's full-year earnings has moved 22.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, INOD has gained about 35.8% so far this year. At the same time, Construction stocks have gained an average of 11.2%. This means that Innodata Inc is outperforming the sector as a whole this year.
Trex (TREX) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 33.3%.
In Trex's case, the consensus EPS estimate for the current year increased 2.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Innodata Inc is a member of the Engineering - R and D Services industry, which includes 23 individual companies and currently sits at #68 in the Zacks Industry Rank. This group has gained an average of 30.1% so far this year, so INOD is performing better in this area.
Trex, however, belongs to the Building Products - Wood industry. Currently, this 9-stock industry is ranked #164. The industry has moved +5.2% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Innodata Inc and Trex as they could maintain their solid performance.
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Innodata Inc (INOD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).