The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Emcor Group (EME) 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.
Emcor Group is one of 88 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. 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. 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 2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, EME has moved about 35.8% on a year-to-date basis. In comparison, Construction companies have returned an average of 11.3%. This shows that Emcor Group is outperforming its peers so far this year.
Knife River (KNF) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.6%.
The consensus estimate for Knife River's current year EPS has increased 5.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Emcor Group is a member of the Building Products - Heavy Construction industry, which includes 8 individual companies and currently sits at #50 in the Zacks Industry Rank. Stocks in this group have gained about 38.3% so far this year, so EME is slightly underperforming its industry this group in terms of year-to-date returns.
Knife River, however, belongs to the Building Products - Miscellaneous industry. Currently, this 33-stock industry is ranked #179. The industry has moved -0.8% so far this year.
Emcor Group and Knife River could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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EMCOR Group, Inc. (EME): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).