For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. A.P. Moller-Maersk (AMKBY) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
A.P. Moller-Maersk is one of 100 companies in the Transportation group. The Transportation group currently sits at #11 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. A.P. Moller-Maersk is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for AMKBY's full-year earnings has moved 68.8% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AMKBY has returned about 8.7% since the start of the calendar year. In comparison, Transportation companies have returned an average of 7.3%. This means that A.P. Moller-Maersk is outperforming the sector as a whole this year.
Universal Logistics (ULH) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 37.1%.
In Universal Logistics' case, the consensus EPS estimate for the current year increased 15.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, A.P. Moller-Maersk belongs to the Transportation - Shipping industry, a group that includes 22 individual stocks and currently sits at #47 in the Zacks Industry Rank. This group has gained an average of 37.4% so far this year, so AMKBY is slightly underperforming its industry in this area.
On the other hand, Universal Logistics belongs to the Transportation - Services industry. This 19-stock industry is currently ranked #83. The industry has moved -2.7% year to date.
Investors interested in the Transportation sector may want to keep a close eye on A.P. Moller-Maersk and Universal Logistics as they attempt to continue their solid performance.
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A.P. Moller-Maersk (AMKBY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).