Yahoo Finance Is Cummins (CMI) Outperforming Other Auto-Tires-Trucks Stocks This Year?
The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cummins (CMI) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Cummins is a member of the Auto-Tires-Trucks sector. This group includes 108 individual stocks and currently holds a Zacks Sector Rank of #12. 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 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. Cummins is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CMI's full-year earnings has moved 2.5% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CMI has gained about 11.2% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 17.3% on average. As we can see, Cummins is performing better than its sector in the calendar year.
Another stock in the Auto-Tires-Trucks sector, Honda Motor (HMC), has outperformed the sector so far this year. The stock's year-to-date return is 3.7%.
In Honda Motor's case, the consensus EPS estimate for the current year increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual companies and currently sits at #1 in the Zacks Industry Rank. On average, this group has gained an average of 11.2% so far this year, meaning that CMI is performing on par in terms of year-to-date returns.
Honda Motor, however, belongs to the Automotive - Foreign industry. Currently, this 25-stock industry is ranked #149. The industry has moved -6.5% so far this year.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Cummins and Honda Motor as they attempt to continue their solid performance.
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