For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Fluor (FLR) 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.
Fluor is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Fluor is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for FLR's full-year earnings has moved 0.4% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that FLR has returned about 4.2% since the start of the calendar year. At the same time, Construction stocks have lost an average of 1.7%. This means that Fluor is performing better than its sector in terms of year-to-date returns.
Granite Construction (GVA) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 4.2%.
In Granite Construction's case, the consensus EPS estimate for the current year increased 8.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Fluor belongs to the Engineering - R and D Services industry, a group that includes 17 individual companies and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 8.5% this year, meaning that FLR is slightly underperforming its industry in terms of year-to-date returns.
Granite Construction, however, belongs to the Building Products - Heavy Construction industry. Currently, this 10-stock industry is ranked #3. The industry has moved +11.8% so far this year.
Fluor and Granite Construction could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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Granite Construction Incorporated (GVA) : Free Stock Analysis Report
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.
