Back to top

Image: Bigstock

Are Construction Stocks Lagging EMCOR Group (EME) This Year?

Read MoreHide Full Article

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Emcor Group (EME - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Emcor Group is one of 101 individual stocks in the Construction sector. Collectively, these companies sit at #13 in the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 0.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that EME has returned about 16.6% since the start of the calendar year. In comparison, Construction companies have returned an average of -20.2%. As we can see, Emcor Group is performing better than its sector in the calendar year.

Another stock in the Construction sector, Sterling Infrastructure (STRL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.6%.

Over the past three months, Sterling Infrastructure's consensus EPS estimate for the current year has increased 4.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 12 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, stocks in this group have lost 5.1% this year, meaning that EME is performing better 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 #89. The industry has moved +8.4% so far this year.

Emcor Group and Sterling Infrastructure could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


EMCOR Group, Inc. (EME) - free report >>

Sterling Infrastructure, Inc. (STRL) - free report >>

Published in