Is Alamo Group (ALG) Stock Outpacing Its Industrial Products Peers This Year?
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Alamo Group (ALG) 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.
Alamo Group is a member of the Industrial Products sector. This group includes 215 individual stocks and currently holds a Zacks Sector Rank of #11. 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 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. Alamo Group is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ALG's full-year earnings has moved 4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, ALG has gained about 28.2% so far this year. Meanwhile, stocks in the Industrial Products group have gained about 1.6% on average. This means that Alamo Group is outperforming the sector as a whole this year.
Another stock in the Industrial Products sector, Columbus McKinnon (CMCO), has outperformed the sector so far this year. The stock's year-to-date return is 2.2%.
In Columbus McKinnon's case, the consensus EPS estimate for the current year increased 4.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alamo Group belongs to the Manufacturing - Farm Equipment industry, a group that includes 8 individual stocks and currently sits at #18 in the Zacks Industry Rank. On average, stocks in this group have lost 13.9% this year, meaning that ALG is performing better in terms of year-to-date returns.
Columbus McKinnon, however, belongs to the Manufacturing - Material Handling industry. Currently, this 2-stock industry is ranked #21. The industry has moved +26.2% so far this year.
Alamo Group and Columbus McKinnon could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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