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Are Construction Stocks Lagging PulteGroup (PHM) 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. Has PulteGroup (PHM) been one of those stocks this year? 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.

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 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. PulteGroup is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for PHM's full-year earnings has moved 22.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

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Based on the most recent data, PHM has returned 51.9% so far this year. Meanwhile, the Construction sector has returned an average of 15.7% on a year-to-date basis. This shows that PulteGroup is outperforming its peers so far this year.

One other Construction stock that has outperformed the sector so far this year is Taylor Morrison Home (TMHC). The stock is up 45.8% year-to-date.

In Taylor Morrison Home's case, the consensus EPS estimate for the current year increased 16.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, PulteGroup belongs to the Building Products - Home Builders industry, a group that includes 19 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 32.2% 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.

Investors with an interest in Construction stocks should continue to track PulteGroup and Taylor Morrison Home. These stocks will be looking to continue their solid performance.

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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