Is Taylor Morrison Home (TMHC) Stock Outpacing Its Construction Peers 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. Taylor Morrison Home (TMHC) 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? 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.
Taylor Morrison Home is a member of the Construction sector. This group includes 104 individual stocks and currently holds a Zacks Sector Rank of #1. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. TMHC is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for TMHC's full-year earnings has moved 9.20% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, TMHC has returned 20.77% so far this year. In comparison, Construction companies have returned an average of 12.67%. As we can see, Taylor Morrison Home is performing better than its sector in the calendar year.
Breaking things down more, TMHC is a member of the Building Products - Home Builders industry, which includes 16 individual companies and currently sits at #6 in the Zacks Industry Rank. On average, this group has gained an average of 34.88% so far this year, meaning that TMHC is slightly underperforming its industry in terms of year-to-date returns.
Investors with an interest in Construction stocks should continue to track TMHC. The stock will be looking to continue its solid performance.
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