Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Paccar (PCAR) 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 Auto-Tires-Trucks sector should help us answer this question.
Paccar is one of 104 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Paccar is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for PCAR's full-year earnings has moved 5.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, PCAR has returned 8% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of -14.2%. This shows that Paccar is outperforming its peers so far this year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Douglas Dynamics (PLOW). The stock is up 20.6% year-to-date.
For Douglas Dynamics, the consensus EPS estimate for the current year has increased 6.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Paccar belongs to the Automotive - Domestic industry, which includes 17 individual stocks and currently sits at #51 in the Zacks Industry Rank. Stocks in this group have lost about 15.5% so far this year, so PCAR is performing better this group in terms of year-to-date returns.
On the other hand, Douglas Dynamics belongs to the Automotive - Replacement Parts industry. This 8-stock industry is currently ranked #223. The industry has moved -13.7% year to date.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Paccar and Douglas Dynamics as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).