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Are Construction Stocks Lagging Dycom Industries (DY) This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has Dycom Industries (DY - 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.

Dycom Industries is a member of the Construction sector. This group includes 92 individual stocks and currently holds a Zacks Sector Rank of #14. 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Dycom Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DY's full-year earnings has moved 6.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, DY has gained about 102.1% so far this year. At the same time, Construction stocks have gained an average of 4.6%. This means that Dycom Industries is outperforming the sector as a whole this year.

Arcosa (ACA - 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 10.9%.

Over the past three months, Arcosa's consensus EPS estimate for the current year has increased 10.8%. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Dycom Industries is a member of the Building Products - Heavy Construction industry, which includes 9 individual companies and currently sits at #16 in the Zacks Industry Rank. Stocks in this group have gained about 45.8% so far this year, so DY is performing better this group in terms of year-to-date returns.

On the other hand, Arcosa belongs to the Building Products - Miscellaneous industry. This 33-stock industry is currently ranked #99. The industry has moved -3.9% year to date.

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


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