Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Is Garrett Motion (GTX) 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.
Garrett Motion is one of 101 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. Garrett Motion is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for GTX's full-year earnings has moved 5.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, GTX has gained about 50% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 10% on average. As we can see, Garrett Motion is performing better than its sector in the calendar year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Phinia (PHIN). The stock is up 21.3% year-to-date.
In Phinia's case, the consensus EPS estimate for the current year increased 7.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Garrett Motion belongs to the Automotive - Original Equipment industry, a group that includes 52 individual companies and currently sits at #190 in the Zacks Industry Rank. On average, stocks in this group have lost 1% this year, meaning that GTX is performing better in terms of year-to-date returns. Phinia is also part of the same industry.
Garrett Motion and Phinia could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).