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? Let's take a closer look at the stock's year-to-date performance to find out.
Cummins is one of 105 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #15 in 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Cummins is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CMI's full-year earnings has moved 1.9% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CMI has moved about 2.3% on a year-to-date basis. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 10.8% on average. This shows that Cummins is outperforming its peers so far 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 16.6%.
In Honda Motor's case, the consensus EPS estimate for the current year increased 40.6% 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, which includes 1 individual stocks and currently sits at #7 in the Zacks Industry Rank. On average, stocks in this group have gained 1.9% this year, meaning that CMI is performing better in terms of year-to-date returns.
On the other hand, Honda Motor belongs to the Automotive - Foreign industry. This 23-stock industry is currently ranked #154. The industry has moved -14.7% year to date.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Cummins and Honda Motor as they could maintain their solid performance.
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Cummins Inc. (CMI): Free Stock Analysis Report
Honda Motor Co., Ltd. (HMC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).