For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Sandvik AB (SDVKY) 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? 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.
Sandvik AB is one of 182 companies in the Industrial Products group. The Industrial Products group currently sits at #8 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Sandvik AB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for SDVKY's full-year earnings has moved 12.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, SDVKY has returned 28.1% so far this year. In comparison, Industrial Products companies have returned an average of 14.5%. This shows that Sandvik AB is outperforming its peers so far this year.
Another stock in the Industrial Products sector, Valmont Industries (VMI), has outperformed the sector so far this year. The stock's year-to-date return is 23.6%.
Over the past three months, Valmont Industries' consensus EPS estimate for the current year has increased 7.9%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Sandvik AB belongs to the Manufacturing - Tools & Related Products industry, which includes 8 individual stocks and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 5.1% so far this year, so SDVKY is performing better in this area.
Valmont Industries, however, belongs to the Steel - Pipe and Tube industry. Currently, this 2-stock industry is ranked #11. The industry has moved +54.7% so far this year.
Investors with an interest in Industrial Products stocks should continue to track Sandvik AB and Valmont Industries. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).