The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. KB Home (KBH) 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? Let's take a closer look at the stock's year-to-date performance to find out.
KB Home is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #13 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. KB Home is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KBH's full-year earnings has moved 1.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, KBH has returned 30% so far this year. Meanwhile, the Construction sector has returned an average of 23.1% on a year-to-date basis. This means that KB Home is performing better than its sector in terms of year-to-date returns.
One other Construction stock that has outperformed the sector so far this year is Acuity Brands (AYI). The stock is up 50.8% year-to-date.
For Acuity Brands, the consensus EPS estimate for the current year has increased 0.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, KB Home belongs to the Building Products - Home Builders industry, which includes 17 individual stocks and currently sits at #98 in the Zacks Industry Rank. This group has gained an average of 26.6% so far this year, so KBH is performing better in this area.
In contrast, Acuity Brands falls under the Building Products - Lighting industry. Currently, this industry has 3 stocks and is ranked #3. Since the beginning of the year, the industry has moved +47.2%.
Investors interested in the Construction sector may want to keep a close eye on KB Home and Acuity Brands 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.
