For those looking to find strong Construction stocks, it is prudent to search for companies in the group that are outperforming their peers. ChampionX (CHX) 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.
ChampionX is a member of our Construction group, which includes 88 different companies and currently sits at #13 in 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 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. ChampionX is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CHX's full-year earnings has moved 0.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CHX has returned about 7.8% since the start of the calendar year. At the same time, Construction stocks have gained an average of 0.3%. This means that ChampionX is outperforming the sector as a whole this year.
One other Construction stock that has outperformed the sector so far this year is Cavco (CVCO). The stock is up 15.6% year-to-date.
The consensus estimate for Cavco's current year EPS has increased 21.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ChampionX belongs to the Engineering - R and D Services industry, which includes 17 individual stocks and currently sits at #167 in the Zacks Industry Rank. On average, stocks in this group have lost 6.4% this year, meaning that CHX is performing better in terms of year-to-date returns.
Cavco, however, belongs to the Building Products - Mobile Homes and RV Builders industry. Currently, this 5-stock industry is ranked #51. The industry has moved +8.8% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to ChampionX and Cavco as they could maintain their solid performance.
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