The Construction group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Latham Group (SWIM) 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? 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.
Latham Group is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #12 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Latham Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for SWIM's full-year earnings has moved 83.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, SWIM has moved about 147.2% on a year-to-date basis. Meanwhile, the Construction sector has returned an average of 26.6% on a year-to-date basis. This means that Latham Group is performing better than its sector in terms of year-to-date returns.
Another Construction stock, which has outperformed the sector so far this year, is Taylor Morrison Home (TMHC). The stock has returned 28.4% year-to-date.
The consensus estimate for Taylor Morrison Home's current year EPS has increased 3.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Latham Group belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #174 in the Zacks Industry Rank. On average, this group has gained an average of 19.8% so far this year, meaning that SWIM is performing better in terms of year-to-date returns.
Taylor Morrison Home, however, belongs to the Building Products - Home Builders industry. Currently, this 17-stock industry is ranked #92. The industry has moved +17.9% so far this year.
Going forward, investors interested in Construction stocks should continue to pay close attention to Latham Group and Taylor Morrison Home as they could maintain their solid performance.
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