Is Owens Corning (OC) Stock Outpacing Its Construction Peers This Year?

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has Owens Corning (OC) 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.

Owens Corning is a member of the Construction sector. This group includes 95 individual stocks and currently holds a Zacks Sector Rank of #1. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Owens Corning is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for OC's full-year earnings has moved 10.2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, OC has gained about 18.5% so far this year. At the same time, Construction stocks have gained an average of 11%. This means that Owens Corning is outperforming the sector as a whole this year.

PulteGroup (PHM) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12.8%.

For PulteGroup, the consensus EPS estimate for the current year has increased 7.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Owens Corning belongs to the Building Products - Miscellaneous industry, a group that includes 28 individual stocks and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 12.7% this year, meaning that OC is performing better in terms of year-to-date returns.

In contrast, PulteGroup falls under the Building Products - Home Builders industry. Currently, this industry has 16 stocks and is ranked #22. Since the beginning of the year, the industry has moved +6.6%.

Investors interested in the Construction sector may want to keep a close eye on Owens Corning and PulteGroup as they attempt to continue their solid performance.

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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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