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Has Weyerhaeuser (WY) 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. Weyerhaeuser (WY - 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? 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.

Weyerhaeuser is one of 104 companies in the Construction group. The Construction group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. WY is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for WY's full-year earnings has moved 40% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, WY has moved about 5% on a year-to-date basis. In comparison, Construction companies have returned an average of 16.06%. This means that Weyerhaeuser is performing better than its sector in terms of year-to-date returns.

To break things down more, WY belongs to the Building Products - Wood industry, a group that includes 14 individual companies and currently sits at #58 in the Zacks Industry Rank. On average, this group has gained an average of 24.09% so far this year, meaning that WY is slightly underperforming its industry in terms of year-to-date returns.

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


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