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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. 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? 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 one of 92 companies in the Construction group. The Construction group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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).

The Zacks Consensus Estimate for DY's full-year earnings has moved 7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that DY has returned about 100.5% since the start of the calendar year. In comparison, Construction companies have returned an average of 3.8%. This means that Dycom Industries is outperforming the sector as a whole this year.

One other Construction stock that has outperformed the sector so far this year is Great Lakes Dredge & Dock (GLDD - Free Report) . The stock is up 19% year-to-date.

In Great Lakes Dredge & Dock's case, the consensus EPS estimate for the current year increased 7.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Dycom Industries belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual stocks and currently sits at #21 in the Zacks Industry Rank. This group has gained an average of 48% so far this year, so DY is performing better in this area. Great Lakes Dredge & Dock is also part of the same industry.

Investors with an interest in Construction stocks should continue to track Dycom Industries and Great Lakes Dredge & Dock. These stocks will be looking to continue their solid performance.


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