For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Leonardo DRS, Inc. (DRS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
Leonardo DRS, Inc. is a member of our Aerospace group, which includes 67 different companies and currently sits at #10 in the Zacks Sector Rank. 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 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. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DRS' full-year earnings has moved 2.3% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, DRS has returned 21.3% so far this year. Meanwhile, the Aerospace sector has returned an average of -0.6% on a year-to-date basis. As we can see, Leonardo DRS, Inc. is performing better than its sector in the calendar year.
One other Aerospace stock that has outperformed the sector so far this year is Elbit Systems (ESLT). The stock is up 35.4% year-to-date.
The consensus estimate for Elbit Systems' current year EPS has increased 9.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Leonardo DRS, Inc. is a member of the Aerospace - Defense Equipment industry, which includes 37 individual companies and currently sits at #107 in the Zacks Industry Rank. On average, this group has gained an average of 6.6% so far this year, meaning that DRS is performing better in terms of year-to-date returns. Elbit Systems is also part of the same industry.
Leonardo DRS, Inc. and Elbit Systems could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.
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This article originally published on Zacks Investment Research (zacks.com).