For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is China Yuchai (CYD) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
China Yuchai is one of 104 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #14 within the Zacks Sector Rank. 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 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. China Yuchai is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CYD's full-year earnings has moved 11.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that CYD has returned about 6.1% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have lost an average of 10%. This means that China Yuchai is outperforming the sector as a whole 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 21.3%.
In Fox Factory Holding's case, the consensus EPS estimate for the current year increased 6.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, China Yuchai belongs to the Automotive - Original Equipment industry, a group that includes 52 individual companies and currently sits at #185 in the Zacks Industry Rank. This group has gained an average of 4.2% so far this year, so CYD is performing better in this area.
Fox Factory Holding, however, belongs to the Automotive - Domestic industry. Currently, this 17-stock industry is ranked #45. The industry has moved -11.2% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to China Yuchai and Fox Factory Holding as they could maintain their solid performance.
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China Yuchai International Limited (CYD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).