The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Orion Marine Group (ORN) 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? 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.
Orion Marine Group is a member of our Construction group, which includes 89 different companies and currently sits at #15 in the Zacks Sector Rank. 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 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. Orion Marine Group is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ORN's full-year earnings has moved 1.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, ORN has moved about 51.7% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 17.1% on a year-to-date basis. This means that Orion Marine Group 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 91.1%.
Over the past three months, Shimmick Corporation's consensus EPS estimate for the current year has increased 81.8%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Orion Marine Group belongs to the Building Products - Heavy Construction industry, a group that includes 8 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 52.7% so far this year, meaning that ORN is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Shimmick Corporation belongs to the Engineering - R and D Services industry. This 22-stock industry is currently ranked #149. The industry has moved +37.6% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Orion Marine Group and Shimmick Corporation as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).