For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ATI (ATI) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
ATI is a member of the Aerospace sector. This group includes 67 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. ATI is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ATI's full-year earnings has moved 5.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, ATI has returned 72.3% so far this year. Meanwhile, the Aerospace sector has returned an average of 4.1% on a year-to-date basis. This means that ATI is performing better than its sector in terms of year-to-date returns.
Another Aerospace stock, which has outperformed the sector so far this year, is Leonardo DRS, Inc. (DRS). The stock has returned 20.1% year-to-date.
The consensus estimate for Leonardo DRS, Inc.'s current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, ATI belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual companies and currently sits at #42 in the Zacks Industry Rank. Stocks in this group have gained about 13.8% so far this year, so ATI is performing better this group in terms of year-to-date returns. Leonardo DRS, Inc. is also part of the same industry.
Investors interested in the Aerospace sector may want to keep a close eye on ATI and Leonardo DRS, Inc. as they attempt to continue their solid performance.
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ATI Inc. (ATI): Free Stock Analysis Report
Leonardo DRS, Inc. (DRS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).