Is Construction Partners (ROAD) Outperforming Other Construction Stocks 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. Construction Partners (ROAD) 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 ROAD and the rest of the Construction group's stocks.

Construction Partners is a member of our Construction group, which includes 102 different companies and currently sits at #2 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. ROAD is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ROAD's full-year earnings has moved 11.65% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, ROAD has gained about 9.93% so far this year. In comparison, Construction companies have returned an average of 7.04%. This means that Construction Partners is outperforming the sector as a whole this year.

To break things down more, ROAD belongs to the Building Products - Miscellaneous industry, a group that includes 25 individual companies and currently sits at #80 in the Zacks Industry Rank. On average, stocks in this group have gained 4.30% this year, meaning that ROAD is performing better in terms of year-to-date returns.

ROAD will likely be looking to continue its solid performance, so investors interested in Construction stocks should continue to pay close attention to the company.

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