The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Heico Corporation (HEI) 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 Aerospace peers, we might be able to answer that question.
Heico Corporation is one of 82 individual stocks in the Aerospace sector. Collectively, these companies sit at #4 in 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 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. Heico Corporation is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for HEI's full-year earnings has moved 6.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, HEI has returned 4.3% so far this year. Meanwhile, the Aerospace sector has returned an average of -10.2% on a year-to-date basis. This shows that Heico Corporation is outperforming its peers so far this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Lockheed Martin (LMT). The stock has returned 33% year-to-date.
The consensus estimate for Lockheed Martin's current year EPS has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Heico Corporation is a member of the Aerospace - Defense Equipment industry, which includes 39 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have lost 8.2% this year, meaning that HEI is performing better in terms of year-to-date returns.
On the other hand, Lockheed Martin belongs to the Aerospace - Defense industry. This 42-stock industry is currently ranked #104. The industry has moved -11% year to date.
Heico Corporation and Lockheed Martin could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).