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Are Construction Stocks Lagging EMCOR Group (EME) 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. Emcor Group (EME - 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.

Emcor Group is a member of the Construction sector. This group includes 101 individual stocks and currently holds a Zacks Sector Rank of #15. 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 is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, EME has moved about 20.6% on a year-to-date basis. Meanwhile, stocks in the Construction group have lost about 19.8% on average. This shows that Emcor Group is outperforming its peers so far this year.

Comfort Systems (FIX - Free Report) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 27.4%.

In Comfort Systems' case, the consensus EPS estimate for the current year increased 6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Emcor Group is a member of the Building Products - Heavy Construction industry, which includes 12 individual companies and currently sits at #91 in the Zacks Industry Rank. This group has lost an average of 2.9% so far this year, so EME is performing better in this area.

In contrast, Comfort Systems falls under the Building Products - Air Conditioner and Heating industry. Currently, this industry has 6 stocks and is ranked #41. Since the beginning of the year, the industry has moved -13.7%.

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


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