Are Construction Stocks Lagging AZEK (AZEK) This Year?

Zacks
25 Mar

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has The AZEK Company (AZEK) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

The AZEK Company is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. 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 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. The AZEK Company is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AZEK's full-year earnings has moved 4.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, AZEK has returned 2.3% so far this year. In comparison, Construction companies have returned an average of -4.9%. This means that The AZEK Company is performing better than its sector in terms of year-to-date returns.

Babcock International Group PLC (BCKIY) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 63.6%.

The consensus estimate for Babcock International Group PLC's current year EPS has increased 4.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, The AZEK Company belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 6 individual stocks and currently sits at #158 in the Zacks Industry Rank. On average, this group has lost an average of 3.2% so far this year, meaning that AZEK is performing better in terms of year-to-date returns.

Babcock International Group PLC, however, belongs to the Engineering - R and D Services industry. Currently, this 17-stock industry is ranked #41. The industry has moved -12.7% so far this year.

Investors with an interest in Construction stocks should continue to track The AZEK Company and Babcock International Group PLC. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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