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Are Construction Stocks Lagging Arcosa (ACA) This Year?

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

Arcosa is a member of our Construction group, which includes 101 different companies and currently sits at #15 in 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. Arcosa is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ACA's full-year earnings has moved 26.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that ACA has returned about 18.8% since the start of the calendar year. In comparison, Construction companies have returned an average of -26.3%. As we can see, Arcosa is performing better than its sector in the calendar year.

Another stock in the Construction sector, ChampionX (CHX - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 39.8%.

The consensus estimate for ChampionX's current year EPS has increased 1.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Arcosa belongs to the Building Products - Miscellaneous industry, which includes 28 individual stocks and currently sits at #168 in the Zacks Industry Rank. This group has lost an average of 26.4% so far this year, so ACA is performing better in this area.

On the other hand, ChampionX belongs to the Engineering - R and D Services industry. This 20-stock industry is currently ranked #195. The industry has moved +1.5% year to date.

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


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