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Are Construction Stocks Lagging Dycom Industries (DY) 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. Is Dycom Industries (DY - Free Report) one of those stocks right now? 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 93 companies in the Construction group. The Construction group currently sits at #16 within the Zacks Sector Rank. 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 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 #2 (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.

Based on the most recent data, DY has returned 10.5% so far this year. At the same time, Construction stocks have gained an average of 9.5%. This shows that Dycom Industries is outperforming its peers so far this year.

Emcor Group (EME - 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 15.5%.

The consensus estimate for Emcor Group's current year EPS has increased 1.2% over the past three months. 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 #60 in the Zacks Industry Rank. This group has gained an average of 63.6% so far this year, so DY is slightly underperforming its industry in this area. Emcor Group is also part of the same industry.

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


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