For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
MSC Industrial is one of 188 companies in the Industrial Products group. The Industrial Products group currently sits at #6 within 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 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. MSC Industrial is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for MSM's full-year earnings has moved 2.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, MSM has moved about 41.5% on a year-to-date basis. In comparison, Industrial Products companies have returned an average of 16.6%. This means that MSC Industrial is performing better than its sector in terms of year-to-date returns.
Tenaris S.A. (TS) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 43.4%.
For Tenaris S.A., the consensus EPS estimate for the current year has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, MSC Industrial belongs to the Industrial Services industry, a group that includes 17 individual companies and currently sits at #169 in the Zacks Industry Rank. Stocks in this group have gained about 9% so far this year, so MSM is performing better this group in terms of year-to-date returns.
Tenaris S.A., however, belongs to the Steel - Pipe and Tube industry. Currently, this 2-stock industry is ranked #4. The industry has moved +42% so far this year.
MSC Industrial and Tenaris S.A. could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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MSC Industrial Direct Company, Inc. (MSM): Free Stock Analysis Report
Tenaris S.A. (TS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).