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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. Dycom Industries (DY - 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? Let's take a closer look at the stock's year-to-date performance to find out.

Dycom Industries is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for DY's full-year earnings has moved 16.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, DY has gained about 39.6% so far this year. In comparison, Construction companies have returned an average of -2.6%. This shows that Dycom Industries is outperforming its peers so far this year.

Another Construction stock, which has outperformed the sector so far this year, is Comfort Systems (FIX - Free Report) . The stock has returned 20.4% year-to-date.

Over the past three months, Comfort Systems' consensus EPS estimate for the current year has increased 5.9%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 10 individual companies and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 7.9% so far this year, so DY is performing better this group in terms of year-to-date returns.

On the other hand, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry. This 7-stock industry is currently ranked #72. The industry has moved +6.1% year to date.

Investors interested in the Construction sector may want to keep a close eye on Dycom Industries and Comfort Systems as they attempt to continue their solid performance.


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