Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Teekay Tankers (TNK) 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 Transportation sector should help us answer this question.
Teekay Tankers is a member of the Transportation sector. This group includes 99 individual stocks and currently holds a Zacks Sector Rank of #4. 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 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. Teekay Tankers is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for TNK's full-year earnings has moved 88.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that TNK has returned about 35.2% since the start of the calendar year. Meanwhile, stocks in the Transportation group have gained about 12.1% on average. As we can see, Teekay Tankers is performing better than its sector in the calendar year.
Another stock in the Transportation sector, Westinghouse Air Brake Technologies (WAB), has outperformed the sector so far this year. The stock's year-to-date return is 22%.
The consensus estimate for Westinghouse Air Brake Technologies' current year EPS has increased 2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Teekay Tankers belongs to the Transportation - Shipping industry, a group that includes 22 individual companies and currently sits at #41 in the Zacks Industry Rank. On average, stocks in this group have gained 37.9% this year, meaning that TNK is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Westinghouse Air Brake Technologies falls under the Transportation - Equipment and Leasing industry. Currently, this industry has 9 stocks and is ranked #109. Since the beginning of the year, the industry has moved +8.6%.
Teekay Tankers and Westinghouse Air Brake Technologies could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).