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Has KB Home (KBH) 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. KB Home (KBH - 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.

KB Home is one of 96 individual stocks in the Construction sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. KB Home is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for KBH's full-year earnings has moved 29.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, KBH has gained about 37.6% so far this year. Meanwhile, stocks in the Construction group have gained about 14.3% on average. This means that KB Home is performing better than its sector in terms of year-to-date returns.

One other Construction stock that has outperformed the sector so far this year is NVR (NVR - Free Report) . The stock is up 26.6% year-to-date.

Over the past three months, NVR's consensus EPS estimate for the current year has increased 29.9%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, KB Home belongs to the Building Products - Home Builders industry, a group that includes 19 individual companies and currently sits at #34 in the Zacks Industry Rank. On average, stocks in this group have gained 30.2% this year, meaning that KBH is performing better in terms of year-to-date returns. NVR is also part of the same industry.

Investors with an interest in Construction stocks should continue to track KB Home and NVR. These stocks will be looking to continue their solid performance.


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