Is AAON (AAON) Stock Outpacing Its Construction Peers This Year?
For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Aaon (AAON) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.
Aaon is a member of the Construction sector. This group includes 91 individual stocks and currently holds a Zacks Sector Rank of #2. 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 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. Aaon is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for AAON's full-year earnings has moved 3.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, AAON has gained about 18.3% so far this year. At the same time, Construction stocks have gained an average of 13.1%. This means that Aaon is outperforming the sector as a whole this year.
Another Construction stock, which has outperformed the sector so far this year, is Granite Construction (GVA). The stock has returned 40.4% year-to-date.
In Granite Construction's case, the consensus EPS estimate for the current year increased 10.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aaon belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 5 individual stocks and currently sits at #13 in the Zacks Industry Rank. Stocks in this group have gained about 19.3% so far this year, so AAON is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Granite Construction belongs to the Building Products - Heavy Construction industry. This 10-stock industry is currently ranked #13. The industry has moved +47.5% year to date.
Investors interested in the Construction sector may want to keep a close eye on Aaon and Granite Construction as they attempt to continue their solid performance.
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