Are Construction Stocks Lagging James Hardie Industries (JHX) 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 James Hardie (JHX) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.

James Hardie is one of 97 individual stocks in the Construction sector. Collectively, these companies sit at #5 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 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. James Hardie is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for JHX's full-year earnings has moved 9.3% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, JHX has returned 98.3% so far this year. At the same time, Construction stocks have gained an average of 50.6%. This means that James Hardie is performing better than its sector in terms of year-to-date returns.

One other Construction stock that has outperformed the sector so far this year is Lennar (LEN). The stock is up 71.1% year-to-date.

Over the past three months, Lennar's consensus EPS estimate for the current year has increased 12.8%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, James Hardie belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #37 in the Zacks Industry Rank. This group has gained an average of 58.2% so far this year, so JHX is performing better in this area.

On the other hand, Lennar belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #71. The industry has moved +83.2% year to date.

James Hardie and Lennar could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

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

James Hardie Industries PLC. (JHX) : Free Stock Analysis Report

Lennar Corporation (LEN) : Free Stock Analysis Report

To read this article on 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 Smart Investing to get the latest news, strategies and tips to help you invest smarter.