The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Emerson Electric (EMR) 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 Industrial Products peers, we might be able to answer that question.
Emerson Electric is a member of the Industrial Products sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Emerson Electric is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for EMR's full-year earnings has moved 0.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, EMR has gained about 14.9% so far this year. At the same time, Industrial Products stocks have gained an average of 14.1%. As we can see, Emerson Electric is performing better than its sector in the calendar year.
Another Industrial Products stock, which has outperformed the sector so far this year, is Komatsu Ltd. (KMTUY). The stock has returned 45.7% year-to-date.
For Komatsu Ltd., the consensus EPS estimate for the current year has increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Emerson Electric is a member of the Manufacturing - Electronics industry, which includes 14 individual companies and currently sits at #60 in the Zacks Industry Rank. Stocks in this group have gained about 20.7% so far this year, so EMR is slightly underperforming its industry this group in terms of year-to-date returns.
On the other hand, Komatsu Ltd. belongs to the Manufacturing - Construction and Mining industry. This 6-stock industry is currently ranked #73. The industry has moved +32.7% year to date.
Emerson Electric and Komatsu Ltd. 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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This article originally published on Zacks Investment Research (zacks.com).