The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Matrix Service (MTRX) 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.
Matrix Service is one of 92 individual stocks in the Construction sector. Collectively, these companies sit at #15 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 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. Matrix Service is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for MTRX's full-year earnings has moved 8% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, MTRX has returned 30.3% so far this year. At the same time, Construction stocks have gained an average of 4.2%. This means that Matrix Service is performing better than its sector in terms of year-to-date returns.
Another stock in the Construction sector, NWPX Infrastructure (NWPX), has outperformed the sector so far this year. The stock's year-to-date return is 26.1%.
Over the past three months, NWPX Infrastructure's consensus EPS estimate for the current year has increased 11.9%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Matrix Service belongs to the Engineering - R and D Services industry, a group that includes 15 individual stocks and currently sits at #156 in the Zacks Industry Rank. On average, stocks in this group have gained 18.9% this year, meaning that MTRX is performing better in terms of year-to-date returns.
In contrast, NWPX Infrastructure falls under the Building Products - Miscellaneous industry. Currently, this industry has 33 stocks and is ranked #164. Since the beginning of the year, the industry has moved -3%.
Matrix Service and NWPX Infrastructure could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
