Are Auto-Tires-Trucks Stocks Lagging OPENLANE, Inc. (KAR) This Year?
For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. OPENLANE (KAR) 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.
OPENLANE is a member of our Auto-Tires-Trucks group, which includes 111 different companies and currently sits at #8 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 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. OPENLANE is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for KAR's full-year earnings has moved 6.3% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, KAR has returned 5.5% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of -11.8%. This means that OPENLANE is performing better than its sector in terms of year-to-date returns.
Xos, Inc. (XOS) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 53.6%.
In Xos, Inc.'s case, the consensus EPS estimate for the current year increased 96.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, OPENLANE belongs to the Automotive - Original Equipment industry, which includes 55 individual stocks and currently sits at #146 in the Zacks Industry Rank. Stocks in this group have lost about 0% so far this year, so KAR is performing better this group in terms of year-to-date returns.
Xos, Inc. however, belongs to the Automotive - Domestic industry. Currently, this 20-stock industry is ranked #68. The industry has moved -28.5% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to OPENLANE and Xos, Inc. as they could maintain their solid performance.
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