For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Trex Company (TREX - 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? One simple way to answer this question is to take a look at the year-to-date performance of TREX and the rest of the Construction group's stocks.
Trex Company is one of 92 individual stocks in the Construction sector. Collectively, these companies sit at #13 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. TREX is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for TREX's full-year earnings has moved 9.92% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, TREX has gained about 32.67% so far this year. At the same time, Construction stocks have lost an average of 13.91%. This means that Trex Company is performing better than its sector in terms of year-to-date returns.
Looking more specifically, TREX belongs to the Building Products - Wood industry, which includes 11 individual stocks and currently sits at #92 in the Zacks Industry Rank. This group has lost an average of 9.30% so far this year, so TREX is performing better in this area.
Investors in the Construction sector will want to keep a close eye on TREX as it attempts to continue its solid performance.