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Are Construction Stocks Lagging PulteGroup (PHM) This Year?

Zacks Equity Research
·2-min read

For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. PulteGroup (PHM) 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? Let's take a closer look at the stock's year-to-date performance to find out.

PulteGroup is a member of the Construction sector. This group includes 96 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. PulteGroup is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for PHM's full-year earnings has moved 22.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

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Based on the most recent data, PHM has returned 58.5% so far this year. Meanwhile, stocks in the Construction group have gained about 19.6% on average. As we can see, PulteGroup is performing better than its sector in the calendar year.

Taylor Morrison Home (TMHC) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.5%.

For Taylor Morrison Home, the consensus EPS estimate for the current year has increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, PulteGroup belongs to the Building Products - Home Builders industry, a group that includes 19 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, this group has gained an average of 37% so far this year, meaning that PHM is performing better in terms of year-to-date returns. Taylor Morrison Home is also part of the same industry.

Going forward, investors interested in Construction stocks should continue to pay close attention to PulteGroup and Taylor Morrison Home as they could maintain their solid performance.

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

PulteGroup, Inc. (PHM) : Free Stock Analysis Report

Taylor Morrison Home Corporation (TMHC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research