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Is Dycom Industries (DY) Stock Outpacing Its Construction Peers 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 Dycom Industries (DY - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Dycom Industries is a member of our Construction group, which includes 92 different companies and currently sits at #14 in 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 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. Dycom Industries is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DY's full-year earnings has moved 1.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DY has gained about 85.8% so far this year. Meanwhile, the Construction sector has returned an average of -7.3% on a year-to-date basis. This shows that Dycom Industries is outperforming its peers so far this year.

One other Construction stock that has outperformed the sector so far this year is Cavco (CVCO - Free Report) . The stock is up 22% year-to-date.

For Cavco, the consensus EPS estimate for the current year has increased 3.8% over the past three months. 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 9 individual companies and currently sits at #24 in the Zacks Industry Rank.

On the other hand, Cavco belongs to the Building Products - Mobile Homes and RV Builders industry. This 5-stock industry is currently ranked #46.

Going forward, investors interested in Construction stocks should continue to pay close attention to Dycom Industries and Cavco as they could maintain their solid performance.


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