The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is EuroDry (EDRY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
EuroDry is one of 110 individual stocks in the Transportation sector. Collectively, these companies sit at #5 in 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. EuroDry is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for EDRY's full-year earnings has moved 49.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that EDRY has returned about 300.1% since the start of the calendar year. At the same time, Transportation stocks have gained an average of 7%. As we can see, EuroDry is performing better than its sector in the calendar year.
Another stock in the Transportation sector, Nippon Yusen Kabushiki Kaisha (NPNYY), has outperformed the sector so far this year. The stock's year-to-date return is 51.1%.
The consensus estimate for Nippon Yusen Kabushiki Kaisha's current year EPS has increased 25.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, EuroDry belongs to the Transportation - Shipping industry, which includes 28 individual stocks and currently sits at #58 in the Zacks Industry Rank. On average, stocks in this group have gained 62.4% this year, meaning that EDRY is performing better in terms of year-to-date returns. Nippon Yusen Kabushiki Kaisha is also part of the same industry.
Going forward, investors interested in Transportation stocks should continue to pay close attention to EuroDry and Nippon Yusen Kabushiki Kaisha as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).