Are Construction Stocks Lagging Construction Partners (ROAD) This Year?

The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Construction Partners (ROAD) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Construction peers, we might be able to answer that question.

Construction Partners is one of 92 companies in the Construction group. The Construction group currently sits at #16 within 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 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. Construction Partners is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for ROAD's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ROAD has gained about 3.4% so far this year. Meanwhile, stocks in the Construction group have gained about 3.1% on average. This means that Construction Partners is performing better than its sector in terms of year-to-date returns.

Another stock in the Construction sector, Shimmick Corporation (SHIM), has outperformed the sector so far this year. The stock's year-to-date return is 6.2%.

The consensus estimate for Shimmick Corporation's current year EPS has increased 81.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Construction Partners belongs to the Building Products - Miscellaneous industry, a group that includes 34 individual stocks and currently sits at #191 in the Zacks Industry Rank. This group has lost an average of 6.5% so far this year, so ROAD is performing better in this area.

Shimmick Corporation, however, belongs to the Engineering - R and D Services industry. Currently, this 19-stock industry is ranked #50. The industry has moved +20.1% so far this year.

Going forward, investors interested in Construction stocks should continue to pay close attention to Construction Partners and Shimmick Corporation as they could maintain their solid performance.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.

See

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Construction Partners, Inc. (ROAD): Free Stock Analysis Report

Shimmick Corporation (SHIM): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research