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Are Construction Stocks Lagging Dycom Industries (DY) 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. Is Dycom Industries (DY - Free Report) one of those stocks right now? 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.

Dycom Industries is a member of the Construction sector. This group includes 95 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DY's full-year earnings has moved 8.3% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DY has returned 31.2% so far this year. Meanwhile, stocks in the Construction group have gained about 11.5% on average. This means that Dycom Industries is outperforming the sector as a whole this year.

Another Construction stock, which has outperformed the sector so far this year, is Granite Construction (GVA - Free Report) . The stock has returned 22% year-to-date.

Over the past three months, Granite Construction's consensus EPS estimate for the current year has increased 11%. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 11 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, stocks in this group have gained 52.7% this year, meaning that DY is slightly underperforming its industry in terms of year-to-date returns. Granite Construction is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Granite Construction as they could maintain their solid performance.


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