The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Comfort Systems (FIX) 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.
Comfort Systems is one of 92 companies in the Construction group. The Construction group currently sits at #6 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for FIX's full-year earnings has moved 8.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, FIX has moved about 69.3% on a year-to-date basis. At the same time, Construction stocks have gained an average of 2.2%. As we can see, Comfort Systems is performing better than its sector in the calendar year.
Another Construction stock, which has outperformed the sector so far this year, is Owens Corning (OC). The stock has returned 20.4% year-to-date.
In Owens Corning's case, the consensus EPS estimate for the current year increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 9 individual stocks and currently sits at #41 in the Zacks Industry Rank. This group has gained an average of 17.8% so far this year, so FIX is performing better in this area.
In contrast, Owens Corning falls under the Building Products - Miscellaneous industry. Currently, this industry has 34 stocks and is ranked #163. Since the beginning of the year, the industry has moved -4%.
Investors with an interest in Construction stocks should continue to track Comfort Systems and Owens Corning. These stocks will be looking to continue their solid performance.
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Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).