For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Federal Signal (FSS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Federal Signal is one of 101 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FSS' full-year earnings has moved 7.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, FSS has returned 5.2% so far this year. At the same time, Auto-Tires-Trucks stocks have lost an average of 1.4%. This shows that Federal Signal is outperforming its peers so far this year.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is NIO Inc. (NIO). The stock has returned 28.2% year-to-date.
Over the past three months, NIO Inc.'s consensus EPS estimate for the current year has increased 52.3%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Federal Signal belongs to the Automotive - Domestic industry, which includes 16 individual stocks and currently sits at #161 in the Zacks Industry Rank. On average, stocks in this group have gained 0.1% this year, meaning that FSS is performing better in terms of year-to-date returns.
On the other hand, NIO Inc. belongs to the Automotive - Foreign industry. This 23-stock industry is currently ranked #173. The industry has moved -12.6% year to date.
Investors with an interest in Auto-Tires-Trucks stocks should continue to track Federal Signal and NIO Inc.. These stocks will be looking to continue their solid performance.
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Federal Signal Corporation (FSS): Free Stock Analysis Report
NIO Inc. (NIO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).