Yahoo Finance Are Construction Stocks Lagging PulteGroup (PHM) This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is PulteGroup (PHM) one of those stocks right now? 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.
PulteGroup is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #3. 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. PulteGroup is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for PHM's full-year earnings has moved 2.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, PHM has returned 35.6% so far this year. At the same time, Construction stocks have gained an average of 23.6%. This shows that PulteGroup is outperforming its peers so far this year.
Another Construction stock, which has outperformed the sector so far this year, is Sterling Infrastructure (STRL). The stock has returned 65.9% year-to-date.
In Sterling Infrastructure's case, the consensus EPS estimate for the current year increased 6.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, PulteGroup is a member of the Building Products - Home Builders industry, which includes 17 individual companies and currently sits at #22 in the Zacks Industry Rank. Stocks in this group have gained about 26.8% so far this year, so PHM is performing better this group in terms of year-to-date returns.
Sterling Infrastructure, however, belongs to the Engineering - R and D Services industry. Currently, this 20-stock industry is ranked #144. The industry has moved +37.2% so far this year.
Investors interested in the Construction sector may want to keep a close eye on PulteGroup and Sterling Infrastructure as they attempt to continue their solid performance.
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PulteGroup, Inc. (PHM) : Free Stock Analysis Report
Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report
