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Is Alcoa (AA) Stock Outpacing Its Industrial Products Peers This Year?

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Alcoa (AA) 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? 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 one of 229 companies in the Industrial Products group. The Industrial Products group currently sits at #9 within 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Alcoa is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for AA's full-year earnings has moved 88% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, AA has moved about 2.5% on a year-to-date basis. At the same time, Industrial Products stocks have lost an average of 15.5%. This means that Alcoa is performing better than its sector in terms of year-to-date returns.

Graphic Packaging (GPK) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.5%.

In Graphic Packaging's case, the consensus EPS estimate for the current year increased 11% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Alcoa is a member of the Metal Products - Distribution industry, which includes 6 individual companies and currently sits at #26 in the Zacks Industry Rank. This group has gained an average of 5.4% so far this year, so AA is slightly underperforming its industry in this area.

Graphic Packaging, however, belongs to the Containers - Paper and Packaging industry. Currently, this 12-stock industry is ranked #86. The industry has moved +2.8% so far this year.

Investors with an interest in Industrial Products stocks should continue to track Alcoa and Graphic Packaging. These stocks will be looking to continue their solid performance.

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Zacks Investment Research