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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? 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.

Dycom Industries is one of 92 companies in the Construction group. The Construction group currently sits at #14 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for DY's full-year earnings has moved 4.7% higher within the past quarter. 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 65.3% so far this year. Meanwhile, stocks in the Construction group have gained about 5.5% on average. As we can see, Dycom Industries is performing better than its sector in the calendar year.

Another stock in the Construction sector, Quanta Services (PWR - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 42.1%.

In Quanta Services' case, the consensus EPS estimate for the current year increased 0.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Dycom Industries belongs to the Building Products - Heavy Construction industry, which includes 9 individual stocks and currently sits at #78 in the Zacks Industry Rank. This group has gained an average of 45.4% so far this year, so DY is performing better in this area.

On the other hand, Quanta Services belongs to the Engineering - R and D Services industry. This 15-stock industry is currently ranked #97. The industry has moved +16.4% year to date.

Dycom Industries and Quanta Services could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.


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