For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Quanex Building Products (NX - 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.
Quanex Building Products is one of 101 companies in the Construction group. The Construction group currently sits at #4 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 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. NX is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for NX's full-year earnings has moved 11.77% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, NX has returned 31.86% so far this year. At the same time, Construction stocks have gained an average of 30.27%. This means that Quanex Building Products is performing better than its sector in terms of year-to-date returns.
To break things down more, NX belongs to the Building Products - Miscellaneous industry, a group that includes 25 individual companies and currently sits at #107 in the Zacks Industry Rank. This group has gained an average of 29.41% so far this year, so NX is performing better in this area.
Going forward, investors interested in Construction stocks should continue to pay close attention to NX as it looks to continue its solid performance.