Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. 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? 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.
China Yuchai is one of 104 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 in 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. China Yuchai is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CYD's full-year earnings has moved 23.4% 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, CYD has returned 27.1% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 20.8% on average. This means that China Yuchai is outperforming the sector as a whole this year.
Honda Motor (HMC) 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 4.1%.
The consensus estimate for Honda Motor's current year EPS has increased 571.4% over the past three months. The stock currently has a Zacks Rank #2 (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 #156 in the Zacks Industry Rank. This group has gained an average of 1.3% so far this year, so CYD is performing better in this area.
Honda Motor, however, belongs to the Automotive - Foreign industry. Currently, this 24-stock industry is ranked #208. The industry has moved -13.4% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to China Yuchai and Honda Motor as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).