For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Safran SA (SAFRY) 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? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
Safran SA is a member of the Aerospace sector. This group includes 67 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. Safran SA is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for SAFRY's full-year earnings has moved 2.1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, SAFRY has gained about 7.8% so far this year. Meanwhile, the Aerospace sector has returned an average of 5.1% on a year-to-date basis. This shows that Safran SA is outperforming its peers so far this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Spire Global, Inc. (SPIR). The stock has returned 128.7% year-to-date.
The consensus estimate for Spire Global, Inc.'s current year EPS has increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Safran SA belongs to the Aerospace - Defense industry, a group that includes 29 individual stocks and currently sits at #101 in the Zacks Industry Rank. Stocks in this group have gained about 1.9% so far this year, so SAFRY is performing better this group in terms of year-to-date returns. Spire Global, Inc. is also part of the same industry.
Safran SA and Spire Global, Inc. 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).