Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. American Airlines (AAL) 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 Transportation sector should help us answer this question.
American Airlines is a member of our Transportation group, which includes 131 different companies and currently sits at #16 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. American Airlines is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for AAL's full-year earnings has moved 25.3% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, AAL has moved about 5.5% on a year-to-date basis. In comparison, Transportation companies have returned an average of -3.7%. This means that American Airlines is outperforming the sector as a whole this year.
One other Transportation stock that has outperformed the sector so far this year is Greenbrier Companies (GBX). The stock is up 2.9% year-to-date.
For Greenbrier Companies, the consensus EPS estimate for the current year has increased 34.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, American Airlines is a member of the Transportation - Airline industry, which includes 28 individual companies and currently sits at #43 in the Zacks Industry Rank. On average, this group has gained an average of 35.7% so far this year, meaning that AAL is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Greenbrier Companies belongs to the Transportation - Equipment and Leasing industry. This 10-stock industry is currently ranked #177. The industry has moved -10.1% year to date.
Going forward, investors interested in Transportation stocks should continue to pay close attention to American Airlines and Greenbrier Companies as they could maintain their solid performance.
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