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Is AAON (AAON) Stock Outpacing Its Construction Peers 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. Aaon (AAON - 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.

Aaon is a member of the Construction sector. This group includes 96 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. Aaon is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AAON's full-year earnings has moved 11.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that AAON has returned about 25.7% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 14.2% on average. This shows that Aaon is outperforming its peers so far this year.

Another Construction stock, which has outperformed the sector so far this year, is D.R. Horton (DHI - Free Report) . The stock has returned 21.8% year-to-date.

In D.R. Horton's case, the consensus EPS estimate for the current year increased 21.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, which includes 6 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, stocks in this group have gained 31.8% this year, meaning that AAON is slightly underperforming its industry in terms of year-to-date returns.

D.R. Horton, however, belongs to the Building Products - Home Builders industry. Currently, this 19-stock industry is ranked #6. The industry has moved +31% so far this year.

Going forward, investors interested in Construction stocks should continue to pay close attention to Aaon and D.R. Horton as they could maintain their solid performance.


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D.R. Horton, Inc. (DHI) - free report >>

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