Are Construction Stocks Lagging Comfort Systems USA (FIX) 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. Is Comfort Systems (FIX) 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.

Comfort Systems is a member of our Construction group, which includes 96 different companies and currently sits at #2 in the Zacks Sector Rank. 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. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for FIX's full-year earnings has moved 19.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that FIX has returned about 55.9% since the start of the calendar year. Meanwhile, stocks in the Construction group have gained about 13.6% on average. This means that Comfort Systems is performing better than its sector in terms of year-to-date returns.

Another stock in the Construction sector, M.D.C. Holdings, Inc. (MDC), has outperformed the sector so far this year. The stock's year-to-date return is 13.9%.

In M.D.C. Holdings, Inc.'s case, the consensus EPS estimate for the current year increased 5.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, a group that includes 6 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, stocks in this group have gained 11.9% this year, meaning that FIX is performing better in terms of year-to-date returns.

In contrast, M.D.C. Holdings, Inc. falls under the Building Products - Home Builders industry. Currently, this industry has 17 stocks and is ranked #41. Since the beginning of the year, the industry has moved +9.3%.

Comfort Systems and M.D.C. Holdings, Inc. could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

4 Oil Stocks with Massive Upsides

Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." 

Zacks Investment Research has just released an urgent special report to help you bank on this trend. 

In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. 

Download your free report now to see them.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Comfort Systems USA, Inc. (FIX) : Free Stock Analysis Report

M.D.C. Holdings, Inc. (MDC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.