Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Quanex Building Products (NX - 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 NX and the rest of the Construction group's stocks.
Quanex Building Products is one of 101 companies in the Construction group. The Construction group currently sits at #1 within 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 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. NX is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for NX's full-year earnings has moved 6.60% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, NX has gained about 42.53% so far this year. In comparison, Construction companies have returned an average of 37.59%. 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 #38 in the Zacks Industry Rank. On average, stocks in this group have gained 45.03% this year, meaning that NX is slightly underperforming its industry in terms of year-to-date returns.
NX will likely be looking to continue its solid performance, so investors interested in Construction stocks should continue to pay close attention to the company.