The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Gates Industrial (GTES) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Gates Industrial is one of 181 individual stocks in the Industrial Products sector. Collectively, these companies sit at #8 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. Gates Industrial is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for GTES' full-year earnings has moved 1.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that GTES has returned about 32.7% since the start of the calendar year. In comparison, Industrial Products companies have returned an average of 23.3%. This shows that Gates Industrial is outperforming its peers so far this year.
One other Industrial Products stock that has outperformed the sector so far this year is Vestis (VSTS). The stock is up 96.6% year-to-date.
The consensus estimate for Vestis' current year EPS has increased 20.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Gates Industrial belongs to the Manufacturing - General Industrial industry, a group that includes 41 individual companies and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 11.6% so far this year, so GTES is performing better in this area.
Vestis, however, belongs to the Uniform and Related industry. Currently, this 2-stock industry is ranked #28. The industry has moved +47.7% so far this year.
Gates Industrial and Vestis 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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Gates Industrial Corporation PLC (GTES): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).