Is AAR (AIR) Outperforming Other Aerospace Stocks This Year?

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? Let's take a closer look at the stock's year-to-date performance to find out.

AAR is a member of our Aerospace group, which includes 76 different companies and currently sits at #1 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. AAR is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for AIR's full-year earnings has moved 5.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, AIR has returned 56.2% so far this year. Meanwhile, stocks in the Aerospace group have lost about 3.8% on average. As we can see, AAR is performing better than its sector in the calendar year.

One other Aerospace stock that has outperformed the sector so far this year is Astronics Corporation (ATRO). The stock is up 63% year-to-date.

For Astronics Corporation, the consensus EPS estimate for the current year has increased 22.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, AAR belongs to the Aerospace - Defense Equipment industry, a group that includes 36 individual stocks and currently sits at #39 in the Zacks Industry Rank. Stocks in this group have lost about 2.8% so far this year, so AIR is performing better this group 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).

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