Are Construction Stocks Lagging Frontdoor (FTDR) This Year?

Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Frontdoor (FTDR) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Frontdoor is one of 92 companies in the Construction group. The Construction group currently sits at #11 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. 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 4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, FTDR has gained about 45.5% so far this year. At the same time, Construction stocks have gained an average of 10.2%. As we can see, Frontdoor is performing better than its sector in the calendar year.

Another Construction stock, which has outperformed the sector so far this year, is Owens Corning (OC). The stock has returned 37.4% year-to-date.

Over the past three months, Owens Corning's consensus EPS estimate for the current year has increased 1.3%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Frontdoor belongs to the Building Products - Miscellaneous industry, which includes 34 individual stocks and currently sits at #108 in the Zacks Industry Rank. Stocks in this group have gained about 4.7% so far this year, so FTDR is performing better this group in terms of year-to-date returns. Owens Corning is also part of the same industry.

Investors with an interest in Construction stocks should continue to track Frontdoor and Owens Corning. These stocks will be looking to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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