EME – Are Construction Stocks Lagging EMCOR Group (EME) 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 Emcor Group (EME Free Report) one of those stocks right now? 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.

Emcor Group is a member of our Construction group, which includes 96 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Emcor Group is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for EME’s full-year earnings has moved 7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that EME has returned about 15.4% since the start of the calendar year. At the same time, Construction stocks have gained an average of 13.4%. This shows that Emcor Group is outperforming its peers so far this year.

One other Construction stock that has outperformed the sector so far this year is Sterling Infrastructure (STRL Free Report) . The stock is up 43.7% year-to-date.

Over the past three months, Sterling Infrastructure’s consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Emcor Group belongs to the Building Products – Heavy Construction industry, a group that includes 10 individual companies and currently sits at #99 in the Zacks Industry Rank. This group has gained an average of 15.4% so far this year, so EME is slightly underperforming its industry in this area.

In contrast, Sterling Infrastructure falls under the Engineering – R and D Services industry. Currently, this industry has 20 stocks and is ranked #26. Since the beginning of the year, the industry has moved +8.4%.

Investors interested in the Construction sector may want to keep a close eye on Emcor Group and Sterling Infrastructure as they attempt to continue their solid performance.