Are Auto-Tires-Trucks Stocks Lagging CarGurus (CARG) 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. CarGurus (CARG) 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 Auto-Tires-Trucks sector should help us answer this question.
CarGurus is a member of our Auto-Tires-Trucks group, which includes 113 different companies and currently sits at #11 in the Zacks Sector Rank. 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 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. CarGurus is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CARG's full-year earnings has moved 22.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, CARG has gained about 57.3% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have gained about 34% on average. This shows that CarGurus is outperforming its peers so far this year.
Modine (MOD) 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 171.1%.
Over the past three months, Modine's consensus EPS estimate for the current year has increased 5.4%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, CarGurus is a member of the Automotive - Replacement Parts industry, which includes 7 individual companies and currently sits at #189 in the Zacks Industry Rank. Stocks in this group have lost about 13.3% so far this year, so CARG is performing better this group in terms of year-to-date returns.
In contrast, Modine falls under the Automotive - Original Equipment industry. Currently, this industry has 56 stocks and is ranked #163. Since the beginning of the year, the industry has moved +6.1%.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to CarGurus and Modine as they could maintain their solid performance.
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