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Is Persimmon (PSMMY) Outperforming Other Construction Stocks This Year?

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Has Persimmon Plc (PSMMY - Free Report) 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.

Persimmon Plc is one of 88 companies in the Construction group. The Construction group currently sits at #13 within 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Persimmon Plc is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for PSMMY's full-year earnings has moved 4.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, PSMMY has returned 25.5% so far this year. Meanwhile, the Construction sector has returned an average of 16.9% on a year-to-date basis. As we can see, Persimmon Plc is performing better than its sector in the calendar year.

Another stock in the Construction sector, RPM International (RPM - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 19.6%.

For RPM International, the consensus EPS estimate for the current year has increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Persimmon Plc belongs to the Building Products - Home Builders industry, a group that includes 17 individual companies and currently sits at #76 in the Zacks Industry Rank. On average, this group has gained an average of 29.2% so far this year, meaning that PSMMY is slightly underperforming its industry in terms of year-to-date returns.

RPM International, however, belongs to the Paints and Related Products industry. Currently, this 2-stock industry is ranked #2. The industry has moved -45.5% so far this year.

Investors interested in the Construction sector may want to keep a close eye on Persimmon Plc and RPM International as they attempt to continue their solid performance.


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