The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Gates Industrial (GTES) 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.
Gates Industrial is a member of our Industrial Products group, which includes 181 different companies and currently sits at #5 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 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. Gates Industrial is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for GTES' full-year earnings has moved 1.1% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, GTES has moved about 21.2% on a year-to-date basis. At the same time, Industrial Products stocks have gained an average of 16.9%. This means that Gates Industrial is performing better than its sector in terms of year-to-date returns.
Vestis (VSTS) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 97.2%.
Over the past three months, Vestis' consensus EPS estimate for the current year has increased 20.9%. 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 #75 in the Zacks Industry Rank. On average, this group has gained an average of 3.9% so far this year, meaning that GTES is performing better in terms of year-to-date returns.
Vestis, however, belongs to the Uniform and Related industry. Currently, this 2-stock industry is ranked #32. The industry has moved +49.3% so far this year.
Investors interested in the Industrial Products sector may want to keep a close eye on Gates Industrial and Vestis as they attempt to continue their solid performance.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Gates Industrial Corporation PLC (GTES): Free Stock Analysis Report
Vestis Corporation (VSTS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).