Is Alcoa (AA) Outperforming Other Industrial Products Stocks This Year?
Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Is Alcoa (AA) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.
Alcoa is a member of our Industrial Products group, which includes 229 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Alcoa is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for AA's full-year earnings has moved 107.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, AA has gained about 21.2% so far this year. At the same time, Industrial Products stocks have lost an average of 8.1%. This means that Alcoa is performing better than its sector in terms of year-to-date returns.
Another Industrial Products stock, which has outperformed the sector so far this year, is Deere (DE). The stock has returned 23.8% year-to-date.
In Deere's case, the consensus EPS estimate for the current year increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Alcoa belongs to the Metal Products - Distribution industry, a group that includes 6 individual stocks and currently sits at #23 in the Zacks Industry Rank. On average, stocks in this group have gained 13.3% this year, meaning that AA is performing better in terms of year-to-date returns.
In contrast, Deere falls under the Manufacturing - Farm Equipment industry. Currently, this industry has 8 stocks and is ranked #86. Since the beginning of the year, the industry has moved +23%.
Alcoa and Deere 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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