Yahoo Finance Are Construction Stocks Lagging Dycom Industries (DY) This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Dycom Industries (DY) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Dycom Industries is a member of our Construction group, which includes 96 different companies and currently sits at #2 in 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DY's full-year earnings has moved 8.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, DY has returned 23.7% so far this year. Meanwhile, the Construction sector has returned an average of 13.8% on a year-to-date basis. This means that Dycom Industries is performing better than its sector in terms of year-to-date returns.
Another stock in the Construction sector, Installed Building Products (IBP), has outperformed the sector so far this year. The stock's year-to-date return is 41.3%.
Over the past three months, Installed Building Products' consensus EPS estimate for the current year has increased 7.4%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 11 individual companies and currently sits at #75 in the Zacks Industry Rank. This group has gained an average of 42.8% so far this year, so DY is slightly underperforming its industry in this area.
Installed Building Products, however, belongs to the Building Products - Miscellaneous industry. Currently, this 28-stock industry is ranked #13. The industry has moved +16.9% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Installed Building Products as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dycom Industries, Inc. (DY) : Free Stock Analysis Report
Installed Building Products, Inc. (IBP) : Free Stock Analysis Report
