The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Norbord (OSB) 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? One simple way to answer this question is to take a look at the year-to-date performance of OSB and the rest of the Construction group's stocks.
Norbord is one of 99 individual stocks in the Construction sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. 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 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. OSB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for OSB's full-year earnings has moved 26.67% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, OSB has returned 15.32% so far this year. At the same time, Construction stocks have lost an average of 8.07%. As we can see, Norbord is performing better than its sector in the calendar year.
Breaking things down more, OSB is a member of the Building Products - Wood industry, which includes 11 individual companies and currently sits at #19 in the Zacks Industry Rank. Stocks in this group have gained about 2.60% so far this year, so OSB is performing better this group in terms of year-to-date returns.
Investors in the Construction sector will want to keep a close eye on OSB as it attempts to continue its solid performance.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.