Are Auto-Tires-Trucks Stocks Lagging Michelin (MGDDY) This Year?

Zacks
2024-10-07

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Michelin (MGDDY) 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 Auto-Tires-Trucks sector should help us answer this question.

Michelin is a member of the Auto-Tires-Trucks sector. This group includes 102 individual stocks and currently holds a Zacks Sector Rank of #13. 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. Michelin is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for MGDDY's full-year earnings has moved 6.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, MGDDY has returned 8.6% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of -5.1%. As we can see, Michelin is performing better than its sector in the calendar year.

One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Modine (MOD). The stock is up 125.1% year-to-date.

For Modine, the consensus EPS estimate for the current year has increased 4.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Michelin is a member of the Rubber - Tires industry, which includes 3 individual companies and currently sits at #195 in the Zacks Industry Rank. Stocks in this group have lost about 40.4% so far this year, so MGDDY is performing better this group in terms of year-to-date returns.

On the other hand, Modine belongs to the Automotive - Original Equipment industry. This 51-stock industry is currently ranked #144. The industry has moved -24.4% year to date.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Michelin and Modine as they attempt to continue their solid performance.

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