The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Beazer Homes (BZH) one of those stocks right now? 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.
Beazer Homes is a member of the Construction sector. This group includes 92 individual stocks and currently holds a Zacks Sector Rank of #11. 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 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. Beazer Homes is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for BZH's full-year earnings has moved 20.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, BZH has returned 63.9% so far this year. At the same time, Construction stocks have gained an average of 3.5%. This shows that Beazer Homes is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Century Communities (CCS). The stock has returned 16.5% year-to-date.
In Century Communities' case, the consensus EPS estimate for the current year increased 26.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Beazer Homes belongs to the Building Products - Home Builders industry, a group that includes 16 individual stocks and currently sits at #92 in the Zacks Industry Rank. Stocks in this group have lost about 2.5% so far this year, so BZH is performing better this group in terms of year-to-date returns. Century Communities is also part of the same industry.
Beazer Homes and Century Communities could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Beazer Homes USA, Inc. (BZH): Free Stock Analysis Report
Century Communities, Inc. (CCS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).