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The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Babcock International Group (LON:BAB). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.

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How Quickly Is Babcock International Group Increasing Earnings Per Share?

If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. Shareholders will be happy to know that Babcock International Group's EPS has grown 27% each year, compound, over three years. If growth like this continues on into the future, then shareholders will have plenty to smile about.

Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. The good news is that Babcock International Group is growing revenues, and EBIT margins improved by 2.2 percentage points to 8.5%, over the last year. Both of which are great metrics to check off for potential growth.

The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.LSE:BAB Earnings and Revenue History June 10th 2026

Check out our latest analysis for Babcock International Group

Fortunately, we've got access to analyst forecasts of Babcock International Group's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.

Are Babcock International Group Insiders Aligned With All Shareholders?

Since Babcock International Group has a market capitalisation of UK£4.9b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. We note that their impressive stake in the company is worth UK£265m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!

Story Continues

Does Babcock International Group Deserve A Spot On Your Watchlist?

You can't deny that Babcock International Group has grown its earnings per share at a very impressive rate. That's attractive. With EPS growth rates like that, it's hardly surprising to see company higher-ups place confidence in the company through continuing to hold a significant investment. On the balance of its merits, solid EPS growth and company insiders who are aligned with the shareholders would indicate a business that is worthy of further research. If you think Babcock International Group might suit your style as an investor, you could go straight to its annual report, or you could first check our discounted cash flow (DCF) valuation for the company.

There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of British companies which have demonstrated growth backed by significant insider holdings.

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Arbeiten an einer Flotte neuer Kriegsschiffe der Royal Navy sind durch einen Rückschlag beeinträchtigt worden, nachdem zwei davon falsch zusammengebaut wurden. Die Royal Navy hat ihre fünf Type-31-Fregatten als Arbeitstiere ihres zukünftigen Flottenvermögens positioniert, ausgestattet mit Hubschraubern, Raketen, bewaffneten Interzeptionsbooten und Drohnen, um alles von Piraterie und Menschenhandel bis hin zu bewaffnetem Konflikt anzugehen. Babcock International, das den Vertrag für die Herstellung der Kriegsschiffe hält, hat zugegeben, dass es die ersten beiden in falscher Reihenfolge gebaut hat, was Monate lang £140m an Änderungen erforderte.

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Der britische Energiekonzern Shell hat seine Gewinne im ersten Quartal aufgrund der höheren Ölpreise verdoppelt. Die Gewinne stiegen um 24% gegenüber dem gleichen Zeitraum des Vorjahres. Der Konzern erwirtschaftete ein Ergebnis von 6,9 Milliarden US-Dollar (5,1 Milliarden Euro) im ersten Quartal. Shell gab auch bekannt, dass es einen neuen Aktienrückkauf in Höhe von 3 Milliarden US-Dollar durchführen wird und die Dividende um 5% erhöhen wird.

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The latest analyst update on Babcock International Group nudges the modelled fair value per share from £15.46 to £15.47, a very small shift that still matters for how you read the story. Bullish and bearish analysts interpret this tweak differently, with some seeing it as a sign of steady confidence and others viewing it as limited new upside, all rooted in how they weigh the underlying valuation assumptions. As you read on, you will see how to track these changing views and what they might mean for your own ongoing research.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Babcock International Group.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

Citi, through analyst Charles, recently upgraded Babcock International Group, which many readers may interpret as stronger conviction in the company at Citi’s research desk. The upgrade arrives alongside only a fractional move in the modelled fair value per share, from £15.46 to £15.47. This can be read as support for the existing valuation framework rather than a wholesale reset. Bullish readers tend to view this as confirmation that, in Citi’s view, execution and growth prospects are adequately reflected in current models, without major new risks flagged.

🐻 Bearish Takeaways

Sceptical readers might focus on how small the fair value change is, seeing Citi’s upgrade as offering limited new upside relative to earlier expectations. The modest revision may also prompt questions about whether any identified growth drivers or execution improvements are already largely built into current valuation estimates.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!LSE:BAB 1-Year Stock Price Chart

See how Babcock International Group's fair value stacks up across multiple valuation models — not just analyst targets.

What's in the News

Babcock International Group agreed a six month bridging agreement under the Future Maritime Support Programme with the UK Ministry of Defence to maintain continuity of naval base and nuclear submarine fleet support services after the current contract ends on March 31, 2026. The bridging agreement is intended to lead into a new long term support agreement for the Royal Navy, which is in the latter stages of negotiation with the UK Ministry of Defence. A Letter of Intent from the UK Ministry of Defence sits alongside the bridging agreement and signals continued commitment to Babcock as sole provider of in service submarine support to the Royal Navy. The future agreement is designed to support UK Government and Royal Navy priorities, including the transition from Vanguard Class to Dreadnought Class nuclear deterrent submarines and increased demand, scope and operations at key UK naval bases and Babcock's Devonport Royal Dockyard.

Story Continues

How This Changes the Fair Value For Babcock International Group

Fair value per share adjusts from £15.46 to £15.47. Revenue growth assumption is refined from 5.87% to 5.87%. Net profit margin moves from 5.96% to 6.11% in the forecasts. Future P/E multiple is set from 27.86x to 27.22x. The discount rate used in the model shifts from 8.25% to 8.34%.

Never Miss an Update: Follow The Narrative

Narratives connect a company’s real world contracts, execution and risks to a financial forecast and fair value. They update as new research and news come through so you can see how the story is evolving in one place.

Head over to the Simply Wall St Community and follow the Narrative on Babcock International Group to stay up to date on:

How delivery on frame contracts and large programmes like Skynet affects revenue and margin expectations across Nuclear, Land and other sectors. The role of international partnerships linked to AUKUS and work with Saab and ST Engineering in opening up additional market opportunities. Key execution risks around lumpy orders and working capital swings on projects such as Type 31, and the impact of inflation on margins and cash flow.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BAB.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Babcock International Group PLC (LON:BAB), might not be a large cap stock, but it saw significant share price movement during recent months on the LSE, rising to highs of UK£14.94 and falling to the lows of UK£10.97. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Babcock International Group's current trading price of UK£10.97 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Babcock International Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What Is Babcock International Group Worth?

Great news for investors – Babcock International Group is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is £13.88, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Babcock International Group’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

View our latest analysis for Babcock International Group

What kind of growth will Babcock International Group generate?LSE:BAB Earnings and Revenue Growth April 29th 2026

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Babcock International Group's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since BAB is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Story Continues

Are you a potential investor? If you’ve been keeping an eye on BAB for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy BAB. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. At Simply Wall St, we have the analysts estimates which you can view by clicking here.

If you are no longer interested in Babcock International Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Huntington Ingalls Industries (NYSE:HII) has expanded its work in autonomous naval technologies, including AI-defined operating systems for naval vessels. The company announced a collaboration with Applied Intuition and a partnership with Babcock International Group focused on submarine launched UUV operations. HII reported a scale up in unmanned surface vessel production and outlined plans for distributed shipbuilding and industrial base growth at the Sea Air Space 2026 exposition.

For investors tracking defense and maritime names, HII sits at the intersection of shipbuilding, mission technologies, and autonomy for naval customers. Recent announcements around unmanned surface vessels and UUV operations add more detail on how the business is allocating engineering talent and capital toward autonomous and networked systems. These steps also fit into broader industry efforts to link traditional shipyards with software, AI, and modular production.

Looking ahead, the focus on distributed shipbuilding and industrial base expansion may matter for how HII manages program risk, supply chains, and workforce needs over time. The push into AI defined operating systems and unmanned platforms gives investors more concrete data points to watch as the company executes on its autonomy roadmap and interacts with long term naval modernization priorities.

Stay updated on the most important news stories for Huntington Ingalls Industries by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Huntington Ingalls Industries.NYSE:HII Earnings & Revenue Growth as at Apr 2026

📰 Beyond the headline: 1 risk and 4 things going right for Huntington Ingalls Industries that every investor should see.

For Huntington Ingalls Industries, these autonomy and industrial-base moves speak directly to how its business model could evolve beyond traditional shipbuilding. Partnering with Applied Intuition on an AI-defined “Warship OS” gives HII a way to embed software and data capabilities into both manned ships and unmanned vessels, an area where peers such as General Dynamics and Lockheed Martin are also active. The REMUS agreement with Babcock, which links HII’s underwater drones to submarine launch systems, broadens how existing fleets can use unmanned assets without waiting for new platforms. At the same time, scaling ROMULUS surface vessel production and highlighting distributed shipbuilding at Sea Air Space 2026 shows HII trying to push more work into a network of partner yards and suppliers, rather than relying only on its legacy sites. That combination of AI-powered tools, unmanned systems and higher throughput could influence how HII competes for future modernization work and manages contract execution risk across its large backlog.

Story Continues

How This Fits Into The Huntington Ingalls Industries Narrative

The push into REMUS and ROMULUS unmanned systems, combined with AI partnerships, aligns with the narrative that HII is leaning into higher tech defense segments to support revenue diversification and potential margin improvement. Relying on distributed shipbuilding and external partners could complicate the throughput improvement plan highlighted in the narrative if supply chain or coordination issues resurface. The specific AI-defined operating system work and submarine-launched UUV concept are not fully reflected in the broader narrative, which focuses more on general autonomous growth than these deployment formats.

Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Huntington Ingalls Industries to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Execution risk as HII shifts from prototype unmanned systems to higher rate production and distributed shipbuilding, while still managing complex nuclear and amphibious programs. ⚠️ Dependence on long duration defense budgets and program timing, which could affect how quickly AI-powered autonomy and unmanned capabilities translate into contract awards. 🎁 Growing exposure to unmanned and AI-enabled maritime systems that could complement HII’s core carrier and submarine work and support a broader role in naval modernization. 🎁 Use of automation and robotics in production that may support HII’s goal of higher throughput and more efficient use of a constrained skilled workforce.

What To Watch Going Forward

From here, it is helpful to watch for concrete contract updates around REMUS and ROMULUS, follow-on orders for AI-defined ship operating systems, and any shipyard metrics that show whether automation and distributed shipbuilding are improving throughput. Commentary at the upcoming earnings call on how these initiatives fit into backlog, capital allocation, and workforce planning could provide more clarity on execution risk and the pace of adoption by U.S. and allied navies.

To stay informed on how the latest news impacts the investment narrative for Huntington Ingalls Industries, visit the community page for Huntington Ingalls Industries for updates on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include HII.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM) and Babcock International Group PLC (BCKIY). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.

Aecom Technology has a Zacks Rank of #2 (Buy), while Babcock International Group PLC has a Zacks Rank of #4 (Sell) right now. Investors should feel comfortable knowing that ACM likely has seen a stronger improvement to its earnings outlook than BCKIY has recently. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

ACM currently has a forward P/E ratio of 14.18, while BCKIY has a forward P/E of 19.76. We also note that ACM has a PEG ratio of 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BCKIY currently has a PEG ratio of 1.38.

Another notable valuation metric for ACM is its P/B ratio of 4.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, BCKIY has a P/B of 8.58.

These are just a few of the metrics contributing to ACM's Value grade of B and BCKIY's Value grade of C.

ACM stands above BCKIY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ACM is the superior value option right now.

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The blended fair value for Babcock International Group is held at £15.46 per share, even as some individual price targets, such as a move to £16.70 from £14.40, shift around it. That stability reflects a tug of war between bullish research, including recent target lifts from banks like JPMorgan and Deutsche Bank, and more cautious analysts trimming expectations on execution risk. As you read on, you will see how these competing views shape the evolving narrative and what that might mean for your own research process.

Analyst Price Targets don't always capture the full story. Head over to our Company Report to find new ways to value Babcock International Group.

What Wall Street Has Been Saying

🐂 Bullish Takeaways

JPMorgan has raised its price target, which supports the higher blended fair value around £15.46 per share and points to continued interest in the equity story from larger banks. Deutsche Bank has also lifted its target, reinforcing the idea that some analysts see room for further upside if execution aligns with expectations. Berenberg increased its target to £16.70 from £14.40 and keeps a Buy rating, signalling confidence in how the current valuation compares with Babcock International Group’s longer term potential.

🐻 Bearish Takeaways

Citi’s downgrade highlights concerns around execution and the risk that future delivery may not fully support the higher targets set by more optimistic brokers. Peel Hunt has also downgraded the shares, which adds weight to the more cautious camp that questions how reliably Babcock can translate its opportunities into growth without setbacks.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!LSE:BAB 1-Year Stock Price Chart

See how Babcock International Group's fair value stacks up across multiple valuation models — not just analyst targets.

What's in the News

Group Chief Executive David Lockwood plans to retire by the end of this calendar year, after leading Babcock International Group since September 2020 through a period of cultural, portfolio and operating change. The Board has chosen Harry Holt, currently CEO of Babcock's Nuclear sector, to succeed Lockwood, with a transition that starts in June when he becomes Deputy CEO and joins the Board. Babcock reports that under Holt, the Nuclear sector has seen revenue of about 54% between FY23 and FY25, with margins at 9% across defence and civil nuclear operations. Babcock and Critical Infrastructure Technologies Ltd. have expanded their Memorandum of Understanding to co develop a rapidly deployable 5G, ISR and counter UAS platform, extending the potential deployment area from Ukraine to wider Europe and Southeast Asia.

Story Continues

How This Changes the Fair Value For Babcock International Group

Fair value is held at £15.46 per share, with the blended estimate unchanged. Revenue growth assumption is kept at around 5.87%. Net profit margin assumption remains at 5.96%. Future P/E multiple is adjusted slightly from 27.91x to 27.86x. Discount rate moves from 8.32% to 8.25%.

Never Miss an Update: Follow The Narrative

Narratives connect a company’s business story to forecasts and fair value so you can see why the numbers look the way they do. They update as new contracts, news and risks emerge, keeping the investment case current.

Head over to the Simply Wall St Community and follow the Narrative on Babcock International Group to stay up to date on:

How frame contracts, large programmes such as Skynet and international partnerships such as AUKUS, Saab and ST Engineering are influencing potential future revenue opportunities. The path toward higher margins in areas such as Nuclear and Land, along with the role of improved cash flow and pension obligations in supporting reinvestment. Key pressure points including lumpy order intake, working capital swings on contracts such as Type 31, Marine sector margin strain and inflation risk to costs.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BAB.L.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Investors interested in stocks from the Engineering - R and D Services sector have probably already heard of Aecom Technology (ACM) and Babcock International Group PLC (BCKIY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both Aecom Technology and Babcock International Group PLC are sporting a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ACM currently has a forward P/E ratio of 15.04, while BCKIY has a forward P/E of 23.64. We also note that ACM has a PEG ratio of 1.11. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BCKIY currently has a PEG ratio of 1.65.

Another notable valuation metric for ACM is its P/B ratio of 4.75. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, BCKIY has a P/B of 9.2.

These are just a few of the metrics contributing to ACM's Value grade of B and BCKIY's Value grade of C.

Both ACM and BCKIY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ACM is the superior value option right now.

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Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Babcock International Group PLC (BCKIY) 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? 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.

Babcock International Group PLC is a member of our Construction group, which includes 92 different companies and currently sits at #16 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. Babcock International Group PLC is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for BCKIY's full-year earnings has moved 2.6% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, BCKIY has gained about 13.6% so far this year. At the same time, Construction stocks have gained an average of 7%. This shows that Babcock International Group PLC is outperforming its peers so far this year.

Simpson Manufacturing (SSD) is another Construction stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.6%.

For Simpson Manufacturing, the consensus EPS estimate for the current year has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Babcock International Group PLC belongs to the Engineering - R and D Services industry, which includes 19 individual stocks and currently sits at #48 in the Zacks Industry Rank. On average, stocks in this group have gained 22.5% this year, meaning that BCKIY is slightly underperforming its industry in terms of year-to-date returns.

Simpson Manufacturing, however, belongs to the Building Products - Miscellaneous industry. Currently, this 34-stock industry is ranked #186. The industry has moved -0.9% so far this year.

Babcock International Group PLC and Simpson Manufacturing could continue their solid performance, so investors interested in Construction stocks should continue to pay close attention to these stocks.

Story Continues

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