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Are Construction Stocks Lagging Altair Engineering (ALTR) This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Altair Engineering (ALTR - 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? 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.

Altair Engineering is a member of our Construction group, which includes 98 different companies and currently sits at #11 in the Zacks Sector Rank. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Altair Engineering is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ALTR's full-year earnings has moved 123.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, ALTR has moved about 47.4% on a year-to-date basis. Meanwhile, stocks in the Construction group have gained about 5.9% on average. This shows that Altair Engineering is outperforming its peers so far this year.

Another stock in the Construction sector, Toll Brothers (TOL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 15%.

In Toll Brothers' case, the consensus EPS estimate for the current year increased 8.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Altair Engineering belongs to the Engineering - R and D Services industry, a group that includes 21 individual stocks and currently sits at #39 in the Zacks Industry Rank. Stocks in this group have gained about 3.5% so far this year, so ALTR is performing better this group in terms of year-to-date returns.

On the other hand, Toll Brothers belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #67. The industry has moved +12.6% year to date.

Investors interested in the Construction sector may want to keep a close eye on Altair Engineering and Toll Brothers as they attempt to continue their solid performance.

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