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Is LouisianaPacific (LPX) Outperforming Other Construction Stocks This Year?

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The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Louisiana-Pacific (LPX - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Louisiana-Pacific is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #5 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 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. Louisiana-Pacific is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for LPX's full-year earnings has moved 7.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, LPX has gained about 53.6% so far this year. Meanwhile, stocks in the Construction group have gained about 26.8% on average. This means that Louisiana-Pacific is outperforming the sector as a whole this year.

One other Construction stock that has outperformed the sector so far this year is Trane Technologies (TT - Free Report) . The stock is up 62.3% year-to-date.

For Trane Technologies, the consensus EPS estimate for the current year has increased 2.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Louisiana-Pacific is a member of the Building Products - Wood industry, which includes 8 individual companies and currently sits at #172 in the Zacks Industry Rank. Stocks in this group have gained about 14.3% so far this year, so LPX is performing better this group in terms of year-to-date returns.

In contrast, Trane Technologies falls under the Building Products - Air Conditioner and Heating industry. Currently, this industry has 5 stocks and is ranked #93. Since the beginning of the year, the industry has moved +50.8%.

Investors interested in the Construction sector may want to keep a close eye on Louisiana-Pacific and Trane Technologies as they attempt to continue their solid performance.


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