For those looking to find strong Conglomerates stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ITT (ITT) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.
ITT is one of 28 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 in 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 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. ITT is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ITT's full-year earnings has moved 4.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ITT has moved about 15.9% on a year-to-date basis. Meanwhile, stocks in the Conglomerates group have lost about 16.7% on average. This shows that ITT is outperforming its peers so far this year.
Another Conglomerates stock, which has outperformed the sector so far this year, is Marubeni Corp. (MARUY). The stock has returned 11.4% year-to-date.
In Marubeni Corp.'s case, the consensus EPS estimate for the current year increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ITT belongs to the Diversified Operations industry, a group that includes 28 individual stocks and currently sits at #40 in the Zacks Industry Rank. This group has lost an average of 16.7% so far this year, so ITT is performing better in this area. Marubeni Corp. is also part of the same industry.
Investors interested in the Conglomerates sector may want to keep a close eye on ITT and Marubeni Corp. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).