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Has TopBuild (BLD) Outpaced Other Construction Stocks This Year?

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For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. TopBuild (BLD - Free Report) 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? One simple way to answer this question is to take a look at the year-to-date performance of BLD and the rest of the Construction group's stocks.

TopBuild is a member of the Construction sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #2. 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. BLD is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for BLD's full-year earnings has moved 6.70% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, BLD has gained about 52.16% so far this year. Meanwhile, the Construction sector has returned an average of 10.99% on a year-to-date basis. This means that TopBuild is performing better than its sector in terms of year-to-date returns.

Looking more specifically, BLD belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual stocks and currently sits at #49 in the Zacks Industry Rank. Stocks in this group have gained about 15.66% so far this year, so BLD is performing better this group in terms of year-to-date returns.

Going forward, investors interested in Construction stocks should continue to pay close attention to BLD as it looks to continue its solid performance.


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