The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Alstom ADR (ALSMY) 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.
Alstom ADR is one of 131 individual stocks in the Transportation sector. Collectively, these companies sit at #15 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 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. Alstom ADR is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ALSMY's full-year earnings has moved 10.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that ALSMY has returned about 13.8% since the start of the calendar year. In comparison, Transportation companies have returned an average of 0.9%. This shows that Alstom ADR is outperforming its peers so far this year.
Another Transportation stock, which has outperformed the sector so far this year, is Viking Holdings (VIK). The stock has returned 8.6% year-to-date.
For Viking Holdings, the consensus EPS estimate for the current year has increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Alstom ADR belongs to the Transportation - Rail industry, a group that includes 9 individual companies and currently sits at #147 in the Zacks Industry Rank. On average, this group has gained an average of 2.9% so far this year, meaning that ALSMY is performing better in terms of year-to-date returns.
On the other hand, Viking Holdings belongs to the Transportation - Truck industry. This 13-stock industry is currently ranked #202. The industry has moved -4.7% year to date.
Alstom ADR and Viking Holdings could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).
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