Is PulteGroup (PHM) Outperforming Other Construction Stocks This Year?
The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. PulteGroup (PHM) 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? 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.
PulteGroup is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. PulteGroup is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for PHM's full-year earnings has moved 2.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, PHM has moved about 30.9% on a year-to-date basis. At the same time, Construction stocks have gained an average of 19.8%. As we can see, PulteGroup is performing better than its sector in the calendar year.
Another Construction stock, which has outperformed the sector so far this year, is Sterling Infrastructure (STRL). The stock has returned 34.3% year-to-date.
Over the past three months, Sterling Infrastructure's consensus EPS estimate for the current year has increased 6.7%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, PulteGroup belongs to the Building Products - Home Builders industry, a group that includes 17 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, stocks in this group have gained 27.4% this year, meaning that PHM is performing better in terms of year-to-date returns.
On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 20-stock industry is currently ranked #81. The industry has moved +32.5% year to date.
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