For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is TopBuild (BLD - 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.
TopBuild is one of 99 individual stocks in the Construction sector. Collectively, these companies sit at #7 in 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. BLD is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for BLD's full-year earnings has moved 4.68% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, BLD has gained about 99.49% so far this year. At the same time, Construction stocks have gained an average of 22.12%. This shows that TopBuild is outperforming its peers so far this year.
Looking more specifically, BLD belongs to the Building Products - Miscellaneous industry, a group that includes 26 individual stocks and currently sits at #160 in the Zacks Industry Rank. On average, this group has gained an average of 24.59% so far this year, meaning that BLD is performing better in terms of year-to-date returns.
Going forward, investors interested in Construction stocks should continue to pay close attention to BLD as it looks to continue its solid performance.