Are Transportation Stocks Lagging Euroseas (ESEA) This Year?

The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Euroseas Ltd. (ESEA) one of those stocks right now? 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.

Euroseas Ltd. is a member of the Transportation sector. This group includes 110 individual stocks and currently holds a Zacks Sector Rank of #2. 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. Euroseas Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESEA's full-year earnings has moved 3.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ESEA has returned 21.6% so far this year. In comparison, Transportation companies have returned an average of 16.6%. This means that Euroseas Ltd. is outperforming the sector as a whole this year.

Another Transportation stock, which has outperformed the sector so far this year, is ZIM Integrated Shipping Services (ZIM). The stock has returned 20.4% year-to-date.

In ZIM Integrated Shipping Services' case, the consensus EPS estimate for the current year increased 143.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Euroseas Ltd. is a member of the Transportation - Shipping industry, which includes 28 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has gained an average of 33.9% so far this year, meaning that ESEA is slightly underperforming its industry in terms of year-to-date returns. ZIM Integrated Shipping Services is also part of the same industry.

Investors interested in the Transportation sector may want to keep a close eye on Euroseas Ltd. and ZIM Integrated Shipping Services as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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