The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Argan (AGX) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Argan is a member of our Construction group, which includes 92 different companies and currently sits at #9 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Argan is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AGX's full-year earnings has moved 10.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AGX has gained about 97.1% so far this year. In comparison, Construction companies have returned an average of 12%. This means that Argan is outperforming the sector as a whole this year.
One other Construction stock that has outperformed the sector so far this year is M/I Homes (MHO). The stock is up 17.3% year-to-date.
For M/I Homes, the consensus EPS estimate for the current year has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Argan belongs to the Building Products - Miscellaneous industry, a group that includes 34 individual companies and currently sits at #106 in the Zacks Industry Rank. On average, stocks in this group have gained 4.7% this year, meaning that AGX is performing better in terms of year-to-date returns.
On the other hand, M/I Homes belongs to the Building Products - Home Builders industry. This 16-stock industry is currently ranked #173. The industry has moved -0.9% year to date.
Investors interested in the Construction sector may want to keep a close eye on Argan and M/I Homes as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
