Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Cummins (CMI) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Cummins is a member of the Auto-Tires-Trucks sector. This group includes 105 individual stocks and currently holds a Zacks Sector Rank of #13. 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 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. 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 2.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that CMI has returned about 1.4% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 12.9%. This shows that Cummins is outperforming its peers so far this year.
Another stock in the Auto-Tires-Trucks sector, Fox Factory Holding (FOXF), has outperformed the sector so far this year. The stock's year-to-date return is 8.8%.
Over the past three months, Fox Factory Holding's consensus EPS estimate for the current year has increased 16.3%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual companies and currently sits at #4 in the Zacks Industry Rank. On average, stocks in this group have gained 1.1% this year, meaning that CMI is performing better in terms of year-to-date returns.
Fox Factory Holding, however, belongs to the Automotive - Domestic industry. Currently, this 17-stock industry is ranked #93. The industry has moved -12.4% so far this year.
Cummins and Fox Factory Holding could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).