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Are Construction Stocks Lagging Howmet Aerospace (HWM) 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. Has Howmet (HWM - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Howmet 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 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Howmet is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for HWM's full-year earnings has moved 10% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, HWM has moved about 49.4% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 12.1% on a year-to-date basis. This means that Howmet is outperforming the sector as a whole this year.

Another stock in the Construction sector, MasTec (MTZ - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.7%.

Over the past three months, MasTec's consensus EPS estimate for the current year has increased 15.1%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Howmet is a member of the Engineering - R and D Services industry, which includes 21 individual companies and currently sits at #54 in the Zacks Industry Rank. On average, this group has gained an average of 22.5% so far this year, meaning that HWM is performing better in terms of year-to-date returns.

In contrast, MasTec falls under the Building Products - Heavy Construction industry. Currently, this industry has 11 stocks and is ranked #3. Since the beginning of the year, the industry has moved +53.1%.

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


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