Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Constellium (CSTM) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.
Constellium is a member of our Industrial Products group, which includes 186 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Constellium is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CSTM's full-year earnings has moved 11% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CSTM has gained about 32.4% so far this year. In comparison, Industrial Products companies have returned an average of 15.7%. This means that Constellium is outperforming the sector as a whole this year.
One other Industrial Products stock that has outperformed the sector so far this year is Distribution Solutions Group (DSGR). The stock is up 27.6% year-to-date.
For Distribution Solutions Group, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Constellium is a member of the Metal Products - Distribution industry, which includes 5 individual companies and currently sits at #29 in the Zacks Industry Rank. On average, this group has lost an average of 10.4% so far this year, meaning that CSTM is performing better in terms of year-to-date returns.
In contrast, Distribution Solutions Group falls under the Industrial Services industry. Currently, this industry has 16 stocks and is ranked #189. Since the beginning of the year, the industry has moved +9.8%.
Investors interested in the Industrial Products sector may want to keep a close eye on Constellium and Distribution Solutions Group as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).