Are Aerospace Stocks Lagging Archer Aviation (ACHR) This Year?
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Archer Aviation Inc. (ACHR) 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.
Archer Aviation Inc. is a member of our Aerospace group, which includes 48 different companies and currently sits at #3 in the Zacks Sector Rank. 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 is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Archer Aviation Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for ACHR's full-year earnings has moved 3.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ACHR has gained about 188.2% so far this year. Meanwhile, stocks in the Aerospace group have lost about 10.2% on average. This shows that Archer Aviation Inc. is outperforming its peers so far this year.
One other Aerospace stock that has outperformed the sector so far this year is AeroVironment (AVAV). The stock is up 27.1% year-to-date.
The consensus estimate for AeroVironment's current year EPS has increased 0.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Archer Aviation Inc. belongs to the Aerospace - Defense industry, a group that includes 26 individual companies and currently sits at #83 in the Zacks Industry Rank. On average, this group has lost an average of 13.9% so far this year, meaning that ACHR is performing better in terms of year-to-date returns.
On the other hand, AeroVironment belongs to the Aerospace - Defense Equipment industry. This 21-stock industry is currently ranked #93. The industry has moved +8.8% year to date.
Archer Aviation Inc. and AeroVironment could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.
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