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. Has Cummins (CMI) been one of those stocks this year? 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.
Cummins is one of 100 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #12 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 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. Cummins is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for CMI's full-year earnings has moved 13% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, CMI has moved about 30.8% on a year-to-date basis. At the same time, Auto-Tires-Trucks stocks have lost an average of 1.5%. This shows that Cummins is outperforming its peers so far this year.
Another stock in the Auto-Tires-Trucks sector, Custom Truck One Source, Inc. (CTOS), has outperformed the sector so far this year. The stock's year-to-date return is 69.8%.
For Custom Truck One Source, Inc., the consensus EPS estimate for the current year has increased 322.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cummins belongs to the Automotive - Internal Combustion Engines industry, which includes 1 individual stocks and currently sits at #10 in the Zacks Industry Rank. This group has gained an average of 29.8% so far this year, so CMI is performing better in this area.
Custom Truck One Source, Inc., however, belongs to the Automotive - Original Equipment industry. Currently, this 52-stock industry is ranked #106. The industry has moved +5.5% so far this year.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Cummins and Custom Truck One Source, Inc. as they attempt to continue their solid performance.
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Cummins Inc. (CMI): Free Stock Analysis Report
Custom Truck One Source, Inc. (CTOS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).