Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Primoris Services (PRIM) 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? 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.
Primoris Services is one of 87 individual stocks in the Construction sector. Collectively, these companies sit at #14 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 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. Primoris Services is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for PRIM's full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, PRIM has returned 15.4% so far this year. Meanwhile, stocks in the Construction group have gained about 1.4% on average. As we can see, Primoris Services is performing better than its sector in the calendar year.
Persimmon Plc (PSMMY) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.3%.
Over the past three months, Persimmon Plc's consensus EPS estimate for the current year has increased 2.4%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Primoris Services belongs to the Building Products - Heavy Construction industry, a group that includes 9 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 19.4% so far this year, meaning that PRIM is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Persimmon Plc falls under the Building Products - Home Builders industry. Currently, this industry has 17 stocks and is ranked #208. Since the beginning of the year, the industry has moved -12.5%.
Investors with an interest in Construction stocks should continue to track Primoris Services and Persimmon Plc. These stocks will be looking to continue their solid performance.
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Persimmon Plc (PSMMY) : 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.
