For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is DXP Enterprises (DXPE) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
DXP Enterprises is a member of our Industrial Products group, which includes 179 different companies and currently sits at #9 in the Zacks Sector Rank. 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 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. DXP Enterprises is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DXPE's full-year earnings has moved 17.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that DXPE has returned about 24.5% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of 6.2% on a year-to-date basis. As we can see, DXP Enterprises is performing better than its sector in the calendar year.
Kennametal (KMT) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 27%.
Over the past three months, Kennametal's consensus EPS estimate for the current year has increased 56.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, DXP Enterprises belongs to the Manufacturing - General Industrial industry, which includes 43 individual stocks and currently sits at #84 in the Zacks Industry Rank. This group has gained an average of 1.9% so far this year, so DXPE is performing better in this area.
On the other hand, Kennametal belongs to the Manufacturing - Tools & Related Products industry. This 8-stock industry is currently ranked #99. The industry has moved -2% year to date.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to DXP Enterprises and Kennametal as they could maintain their solid performance.
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DXP Enterprises, Inc. (DXPE): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).