The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. China Yuchai (CYD) 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.
China Yuchai is one of 100 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #14 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. China Yuchai is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CYD's full-year earnings has moved 5.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, CYD has gained about 37.6% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 8.1% on average. This means that China Yuchai is outperforming the sector as a whole this year.
Douglas Dynamics (PLOW) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 52.8%.
The consensus estimate for Douglas Dynamics' current year EPS has increased 15% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, China Yuchai is a member of the Automotive - Original Equipment industry, which includes 52 individual companies and currently sits at #160 in the Zacks Industry Rank. On average, stocks in this group have gained 5% this year, meaning that CYD is performing better in terms of year-to-date returns.
Douglas Dynamics, however, belongs to the Automotive - Replacement Parts industry. Currently, this 6-stock industry is ranked #104. The industry has moved -5.4% so far this year.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on China Yuchai and Douglas Dynamics as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).