Is Persimmon (PSMMY) Stock Outpacing Its Construction Peers 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. Persimmon Plc (PSMMY) 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? 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.
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Persimmon Plc is a member of the Construction sector. This group includes 88 individual stocks and currently holds a Zacks Sector Rank of #12. 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 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. Persimmon Plc is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PSMMY's full-year earnings has moved 2.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, PSMMY has moved about 16.8% on a year-to-date basis. At the same time, Construction stocks have lost an average of 2.7%. This shows that Persimmon Plc is outperforming its peers so far this year.
Another stock in the Construction sector, Construction Partners (ROAD), has outperformed the sector so far this year. The stock's year-to-date return is 22.3%.
The consensus estimate for Construction Partners' current year EPS has increased 10.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Persimmon Plc belongs to the Building Products - Home Builders industry, which includes 17 individual stocks and currently sits at #222 in the Zacks Industry Rank. On average, stocks in this group have lost 14.9% this year, meaning that PSMMY is performing better in terms of year-to-date returns.
On the other hand, Construction Partners belongs to the Building Products - Miscellaneous industry. This 30-stock industry is currently ranked #91. The industry has moved -9% year to date.
Persimmon Plc and Construction Partners could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.
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