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Is Toll Brothers (TOL) Outperforming 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. Has Toll Brothers (TOL - 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.

Toll Brothers is one of 94 companies in the Construction group. The Construction group currently sits at #1 within the Zacks Sector Rank. 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Toll Brothers is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for TOL's full-year earnings has moved 12.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, TOL has returned 27.6% so far this year. Meanwhile, stocks in the Construction group have gained about 10.9% on average. This means that Toll Brothers 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 Tri Pointe Homes (TPH - Free Report) . The stock is up 12.7% year-to-date.

Over the past three months, Tri Pointe Homes' consensus EPS estimate for the current year has increased 25.2%. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Toll Brothers belongs to the Building Products - Home Builders industry, a group that includes 16 individual stocks and currently sits at #21 in the Zacks Industry Rank. On average, stocks in this group have gained 8.9% this year, meaning that TOL is performing better in terms of year-to-date returns. Tri Pointe Homes is also part of the same industry.

Toll Brothers and Tri Pointe Homes could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


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