Has Armstrong World Industries (AWI) Outpaced Other Construction Stocks 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 Armstrong World Industries (AWI) 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.

Armstrong World Industries is a member of the Construction sector. This group includes 96 individual stocks and currently holds a Zacks Sector Rank of #1. 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. Armstrong World Industries is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AWI's full-year earnings has moved 4.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, AWI has moved about 18.5% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 7.3% on a year-to-date basis. This means that Armstrong World Industries is performing better than its sector in terms of year-to-date returns.

CaesarStone (CSTE) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 51.6%.

The consensus estimate for CaesarStone's current year EPS has increased 38.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Armstrong World Industries belongs to the Building Products - Miscellaneous industry, a group that includes 28 individual companies and currently sits at #14 in the Zacks Industry Rank. On average, this group has gained an average of 10.4% so far this year, meaning that AWI is performing better in terms of year-to-date returns. CaesarStone is also part of the same industry.

Investors interested in the Construction sector may want to keep a close eye on Armstrong World Industries and CaesarStone as they attempt to continue their solid performance.

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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.

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