Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Caterpillar (CAT) been one of those stocks this year? 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.
Caterpillar is a member of our Industrial Products group, which includes 188 different companies and currently sits at #11 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. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CAT's full-year earnings has moved 10.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, CAT has returned 26.7% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 9.8% on average. This shows that Caterpillar is outperforming its peers so far this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is W.W. Grainger (GWW). The stock has returned 30.6% year-to-date.
The consensus estimate for W.W. Grainger's current year EPS has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Caterpillar belongs to the Manufacturing - Construction and Mining industry, a group that includes 7 individual companies and currently sits at #41 in the Zacks Industry Rank. On average, stocks in this group have gained 20.5% this year, meaning that CAT is performing better in terms of year-to-date returns.
W.W. Grainger, however, belongs to the Industrial Services industry. Currently, this 17-stock industry is ranked #99. The industry has moved +9.4% so far this year.
Investors with an interest in Industrial Products stocks should continue to track Caterpillar and W.W. Grainger. These stocks will be looking to continue their solid performance.
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Caterpillar Inc. (CAT): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).