Back to top

Image: Bigstock

Is Beazer Homes USA (BZH) Stock Outpacing Its Construction Peers This Year?

Read MoreHide Full Article

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Beazer Homes (BZH - 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.

Beazer Homes is a member of our Construction group, which includes 92 different companies and currently sits at #9 in 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 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. Beazer Homes is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for BZH's full-year earnings has moved 50.4% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, BZH has returned 64.5% so far this year. At the same time, Construction stocks have lost an average of 1.3%. As we can see, Beazer Homes is performing better than its sector in the calendar year.

Century Communities (CCS - 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 3.3%.

In Century Communities' case, the consensus EPS estimate for the current year increased 26.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Beazer Homes belongs to the Building Products - Home Builders industry, which includes 16 individual stocks and currently sits at #208 in the Zacks Industry Rank. Stocks in this group have lost about 8.7% so far this year, so BZH is performing better this group in terms of year-to-date returns. Century Communities is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to Beazer Homes and Century Communities as they could maintain their solid performance.

Published in