Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. AAR (AIR) 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 Aerospace sector should help us answer this question.
AAR is a member of the Aerospace sector. This group includes 77 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. AAR is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for AIR's full-year earnings has moved 1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
According to our latest data, AIR has moved about 69.2% on a year-to-date basis. In comparison, Aerospace companies have returned an average of 8.5%. This shows that AAR is outperforming its peers so far this year.
Another Aerospace stock, which has outperformed the sector so far this year, is RTX (RTX). The stock has returned 8.6% year-to-date.
The consensus estimate for RTX's current year EPS has increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, AAR belongs to the Aerospace - Defense Equipment industry, a group that includes 37 individual companies and currently sits at #71 in the Zacks Industry Rank. On average, this group has gained an average of 18% so far this year, meaning that AIR is performing better in terms of year-to-date returns.
RTX, however, belongs to the Aerospace - Defense industry. Currently, this 39-stock industry is ranked #107. The industry has moved +5.1% so far this year.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to AAR and RTX as they could maintain their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).