For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. Has CaesarStone (CSTE) been one of those stocks this year? 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.
CaesarStone is one of 98 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. CaesarStone is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CSTE's full-year earnings has moved 8.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, CSTE has gained about 10.7% so far this year. In comparison, Construction companies have returned an average of 9.3%. This means that CaesarStone is performing better than its sector in terms of year-to-date returns.
Holcim Ltd Unsponsored ADR (HCMLY) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.8%.
The consensus estimate for Holcim Ltd Unsponsored ADR's current year EPS has increased 13.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CaesarStone belongs to the Building Products - Miscellaneous industry, a group that includes 29 individual stocks and currently sits at #10 in the Zacks Industry Rank. On average, this group has gained an average of 13.4% so far this year, meaning that CSTE is slightly underperforming its industry in terms of year-to-date returns. Holcim Ltd Unsponsored ADR is also part of the same industry.
Going forward, investors interested in Construction stocks should continue to pay close attention to CaesarStone and Holcim Ltd Unsponsored ADR as they could maintain their solid performance.
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See them now >>Caesarstone Ltd. (CSTE) : Free Stock Analysis Report
Holcim Ltd Unsponsored ADR (HCMLY) : Free Stock Analysis Report
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