Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Comfort Systems (FIX) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Construction sector should help us answer this question.
Comfort Systems is one of 96 individual stocks in the Construction sector. Collectively, these companies sit at #1 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FIX's full-year earnings has moved 12.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that FIX has returned about 31.6% since the start of the calendar year. In comparison, Construction companies have returned an average of 14.9%. As we can see, Comfort Systems is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Lennar (LEN). The stock is up 25.2% year-to-date.
The consensus estimate for Lennar's current year EPS has increased 7.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, which includes 6 individual stocks and currently sits at #19 in the Zacks Industry Rank. On average, this group has gained an average of 31.6% so far this year, meaning that FIX is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Lennar belongs to the Building Products - Home Builders industry. This 19-stock industry is currently ranked #6. The industry has moved +31.7% year to date.
Comfort Systems and Lennar could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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