Are Construction Stocks Lagging Frontdoor (FTDR) 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. Is Frontdoor (FTDR) one of those stocks right now? 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.

Frontdoor is a member of our Construction group, which includes 88 different companies and currently sits 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. Frontdoor is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for FTDR's full-year earnings has moved 9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that FTDR has returned about 55.7% since the start of the calendar year. Meanwhile, the Construction sector has returned an average of 23.6% on a year-to-date basis. This shows that Frontdoor is outperforming its peers so far this year.

One other Construction stock that has outperformed the sector so far this year is Altair Engineering (ALTR). The stock is up 24.2% year-to-date.

In Altair Engineering's case, the consensus EPS estimate for the current year increased 5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Frontdoor belongs to the Building Products - Miscellaneous industry, a group that includes 27 individual companies and currently sits at #157 in the Zacks Industry Rank. On average, stocks in this group have gained 21.4% this year, meaning that FTDR is performing better in terms of year-to-date returns.

Altair Engineering, however, belongs to the Engineering - R and D Services industry. Currently, this 18-stock industry is ranked #158. The industry has moved +18% so far this year.

Going forward, investors interested in Construction stocks should continue to pay close attention to Frontdoor and Altair Engineering as they could maintain their solid performance.

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