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Is Howmet Aerospace (HWM) 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. Howmet (HWM - 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? 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.

Howmet is one of 91 companies in the Construction group. The Construction group currently sits at #4 within the Zacks Sector Rank. 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 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. Howmet is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HWM's full-year earnings has moved 8.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that HWM has returned about 82.2% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 23.9% on a year-to-date basis. This means that Howmet is performing better than its sector in terms of year-to-date returns.

Holcim Ltd Unsponsored ADR (HCMLY - 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 25.4%.

For Holcim Ltd Unsponsored ADR, the consensus EPS estimate for the current year has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Howmet belongs to the Engineering - R and D Services industry, a group that includes 20 individual stocks and currently sits at #93 in the Zacks Industry Rank. On average, stocks in this group have gained 36.9% this year, meaning that HWM is performing better in terms of year-to-date returns.

On the other hand, Holcim Ltd Unsponsored ADR belongs to the Building Products - Miscellaneous industry. This 27-stock industry is currently ranked #89. The industry has moved +21.2% year to date.

Investors interested in the Construction sector may want to keep a close eye on Howmet and Holcim Ltd Unsponsored ADR as they attempt to continue their solid performance.


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