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Is Skyline (SKY) Stock Outpacing Its Construction Peers This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has Skyline (SKY - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Skyline is a member of the Construction sector. This group includes 103 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 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. Skyline is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for SKY's full-year earnings has moved 31.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that SKY has returned about 152.8% since the start of the calendar year. In comparison, Construction companies have returned an average of 31.6%. This means that Skyline is performing better than its sector in terms of year-to-date returns.

Another stock in the Construction sector, Sterling Construction (STRL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 40.9%.

In Sterling Construction's case, the consensus EPS estimate for the current year increased 8.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Skyline belongs to the Building Products - Mobile Homes and RV Builders industry, which includes 5 individual stocks and currently sits at #1 in the Zacks Industry Rank. Stocks in this group have gained about 45.2% so far this year, so SKY is performing better this group in terms of year-to-date returns.

On the other hand, Sterling Construction belongs to the Building Products - Heavy Construction industry. This 12-stock industry is currently ranked #227. The industry has moved +27.4% year to date.

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


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