For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cummins (CMI) been one of those stocks this year? 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.
Cummins is one of 104 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #13 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 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. Cummins is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CMI's full-year earnings has moved 12.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CMI has returned 33.7% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -5.5% on a year-to-date basis. As we can see, Cummins is performing better than its sector in the calendar year.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Commercial Vehicle Group (CVGI). The stock has returned 236.8% year-to-date.
In Commercial Vehicle Group's case, the consensus EPS estimate for the current year increased 51.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual stocks and currently sits at #1 in the Zacks Industry Rank. This group has gained an average of 32.4% so far this year, so CMI is performing better in this area.
Commercial Vehicle Group, however, belongs to the Automotive - Original Equipment industry. Currently, this 52-stock industry is ranked #171. The industry has moved +4.7% so far this year.
Investors with an interest in Auto-Tires-Trucks stocks should continue to track Cummins and Commercial Vehicle Group. These stocks will be looking to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).