For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Alamo Group (ALG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Alamo Group is a member of our Industrial Products group, which includes 217 different companies and currently sits at #1 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. Alamo Group is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for ALG's full-year earnings has moved 12.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ALG has gained about 22.1% so far this year. Meanwhile, the Industrial Products sector has returned an average of -1.7% on a year-to-date basis. This means that Alamo Group is outperforming the sector as a whole this year.
Another stock in the Industrial Products sector, Allegion (ALLE), has outperformed the sector so far this year. The stock's year-to-date return is 1.8%.
The consensus estimate for Allegion's current year EPS has increased 3.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Alamo Group belongs to the Manufacturing - Farm Equipment industry, a group that includes 8 individual companies and currently sits at #21 in the Zacks Industry Rank. Stocks in this group have lost about 16.5% so far this year, so ALG is performing better this group in terms of year-to-date returns.
Allegion, however, belongs to the Security and Safety Services industry. Currently, this 22-stock industry is ranked #87. The industry has moved -2.1% so far this year.
Investors with an interest in Industrial Products stocks should continue to track Alamo Group and Allegion. These stocks will be looking to continue their solid performance.
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