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Has Eagle Materials (EXP) Outpaced 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. Is Eagle Materials (EXP) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Eagle Materials is one of 98 companies in the Construction group. The Construction group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Eagle Materials is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for EXP's full-year earnings has moved 0.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

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According to our latest data, EXP has moved about 33.1% on a year-to-date basis. At the same time, Construction stocks have gained an average of 13.7%. This shows that Eagle Materials is outperforming its peers so far this year.

Toll Brothers (TOL) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 22.5%.

In Toll Brothers' case, the consensus EPS estimate for the current year increased 12.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Eagle Materials is a member of the Building Products - Concrete and Aggregates industry, which includes 9 individual companies and currently sits at #72 in the Zacks Industry Rank. Stocks in this group have gained about 21% so far this year, so EXP is performing better this group in terms of year-to-date returns.

On the other hand, Toll Brothers belongs to the Building Products - Home Builders industry. This 17-stock industry is currently ranked #48. The industry has moved +9.4% year to date.

Investors with an interest in Construction stocks should continue to track Eagle Materials and Toll Brothers. These stocks will be looking to continue their solid performance.

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Eagle Materials Inc (EXP) : Free Stock Analysis Report

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Zacks Investment Research