The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Knot Offshore (KNOP) 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.
Knot Offshore is one of 110 companies in the Transportation group. The Transportation group currently sits at #4 within 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 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. Knot Offshore is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for KNOP's full-year earnings has moved 57.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, KNOP has moved about 10.9% on a year-to-date basis. In comparison, Transportation companies have returned an average of 8.3%. This shows that Knot Offshore is outperforming its peers so far this year.
Another Transportation stock, which has outperformed the sector so far this year, is Nordic American Tankers (NAT). The stock has returned 111.3% year-to-date.
The consensus estimate for Nordic American Tankers' current year EPS has increased 3.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Knot Offshore belongs to the Transportation - Shipping industry, which includes 28 individual stocks and currently sits at #36 in the Zacks Industry Rank. On average, this group has gained an average of 60.2% so far this year, meaning that KNOP is slightly underperforming its industry in terms of year-to-date returns. Nordic American Tankers is also part of the same industry.
Investors with an interest in Transportation stocks should continue to track Knot Offshore and Nordic American Tankers. These stocks will be looking to continue their solid performance.
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KNOT Offshore Partners LP (KNOP): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).