Yahoo Finance Are Construction Stocks Lagging Tri Pointe Homes (TPH) 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. Is Tri Pointe Homes (TPH) 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.
Tri Pointe Homes is a member of our Construction group, which includes 94 different companies and currently sits at #2 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. Tri Pointe Homes is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for TPH's full-year earnings has moved 23.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, TPH has gained about 8.7% so far this year. Meanwhile, stocks in the Construction group have gained about 8.5% on average. As we can see, Tri Pointe Homes is performing better than its sector in the calendar year.
One other Construction stock that has outperformed the sector so far this year is Advanced Drainage Systems (WMS). The stock is up 18.4% year-to-date.
For Advanced Drainage Systems, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Tri Pointe Homes belongs to the Building Products - Home Builders industry, a group that includes 16 individual companies and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 4.9% so far this year, so TPH is performing better in this area.
On the other hand, Advanced Drainage Systems belongs to the Building Products - Miscellaneous industry. This 28-stock industry is currently ranked #35. The industry has moved +8.9% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Tri Pointe Homes and Advanced Drainage Systems as they could maintain their solid performance.
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Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report
Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
