The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. MSC Industrial (MSM) 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? Let's take a closer look at the stock's year-to-date performance to find out.
MSC Industrial is one of 181 companies in the Industrial Products group. The Industrial Products group currently sits at #7 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. MSC Industrial is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for MSM's full-year earnings has moved 1.7% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, MSM has returned 37% so far this year. In comparison, Industrial Products companies have returned an average of 19.2%. As we can see, MSC Industrial is performing better than its sector in the calendar year.
Another Industrial Products stock, which has outperformed the sector so far this year, is Proto Labs (PRLB). The stock has returned 57.3% year-to-date.
Over the past three months, Proto Labs' consensus EPS estimate for the current year has increased 12.3%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, MSC Industrial is a member of the Industrial Services industry, which includes 16 individual companies and currently sits at #195 in the Zacks Industry Rank. Stocks in this group have gained about 8.1% so far this year, so MSM is performing better this group in terms of year-to-date returns.
On the other hand, Proto Labs belongs to the Rubber - Plastics industry. This 3-stock industry is currently ranked #110. The industry has moved +52.6% year to date.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to MSC Industrial and Proto Labs as they could maintain their solid performance.
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MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report
Proto Labs, Inc. (PRLB): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).