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Is North American Construction Group (NOA) Stock Outpacing Its Construction Peers This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is North American Construction (NOA - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

North American Construction 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 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. North American Construction is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for NOA's full-year earnings has moved 6.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, NOA has gained about 44.6% so far this year. Meanwhile, the Construction sector has returned an average of 15.3% on a year-to-date basis. This shows that North American Construction is outperforming its peers so far this year.

NVR (NVR - 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 26.5%.

For NVR, the consensus EPS estimate for the current year has increased 18.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, North American Construction is a member of the Building Products - Heavy Construction industry, which includes 10 individual companies and currently sits at #110 in the Zacks Industry Rank. This group has gained an average of 12.5% so far this year, so NOA is performing better in this area.

On the other hand, NVR belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #5. The industry has moved +33.1% year to date.

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


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