The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Federal Signal (FSS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.
Federal Signal is a member of our Auto-Tires-Trucks group, which includes 104 different companies and currently sits at #12 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. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FSS' full-year earnings has moved 4.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, FSS has gained about 6.8% so far this year. At the same time, Auto-Tires-Trucks stocks have lost an average of 12.1%. This means that Federal Signal is outperforming the sector as a whole this year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Polaris Inc (PII). The stock is up 16.1% year-to-date.
Over the past three months, Polaris Inc's consensus EPS estimate for the current year has increased 2.6%. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Federal Signal belongs to the Automotive - Domestic industry, a group that includes 17 individual companies and currently sits at #105 in the Zacks Industry Rank. On average, stocks in this group have lost 13% this year, meaning that FSS is performing better in terms of year-to-date returns. Polaris Inc is also part of the same industry.
Federal Signal and Polaris Inc 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).