Is EMCOR Group (EME) Outperforming 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 Emcor Group (EME) one of those stocks right now? 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.

Emcor Group is one of 95 individual stocks in the Construction sector. Collectively, these companies sit at #1 in the Zacks Sector Rank. 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 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. Emcor Group is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for EME's full-year earnings has moved 28.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that EME has returned about 74.3% since the start of the calendar year. At the same time, Construction stocks have gained an average of 10.5%. This means that Emcor Group is performing better than its sector in terms of year-to-date returns.

Comfort Systems (FIX) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 67.1%.

In Comfort Systems' case, the consensus EPS estimate for the current year increased 24.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Emcor Group belongs to the Building Products - Heavy Construction industry, a group that includes 11 individual companies and currently sits at #26 in the Zacks Industry Rank. On average, this group has gained an average of 49.7% so far this year, meaning that EME is performing better in terms of year-to-date returns.

Comfort Systems, however, belongs to the Building Products - Air Conditioner and Heating industry. Currently, this 6-stock industry is ranked #28. The industry has moved +14.4% so far this year.

Investors with an interest in Construction stocks should continue to track Emcor Group and Comfort Systems. These stocks will be looking to continue their solid performance.

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EMCOR Group, Inc. (EME) : Free Stock Analysis Report

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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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