For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is AAR (AIR) one of those stocks right now? 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.
AAR is one of 76 companies in the Aerospace group. The Aerospace group currently sits at #1 within 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 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. AAR is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AIR's full-year earnings has moved 6.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, AIR has returned 75.7% so far this year. In comparison, Aerospace companies have returned an average of 7.7%. This means that AAR is performing better than its sector in terms of year-to-date returns.
One other Aerospace stock that has outperformed the sector so far this year is Astronics Corporation (ATRO). The stock is up 65.7% year-to-date.
For Astronics Corporation, the consensus EPS estimate for the current year has increased 20.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, AAR is a member of the Aerospace - Defense Equipment industry, which includes 36 individual companies and currently sits at #50 in the Zacks Industry Rank. On average, stocks in this group have gained 9.8% this year, meaning that AIR is performing better in terms of year-to-date returns. Astronics Corporation is also part of the same industry.
AAR and Astronics Corporation 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).