Has CarGurus (CARG) Outpaced Other Auto-Tires-Trucks Stocks 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 one of 113 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #9 in 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 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. CarGurus is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for CARG's full-year earnings has moved 22.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, CARG has returned 74.8% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of 40.4% on a year-to-date basis. This means that CarGurus is outperforming the sector as a whole this year.
Another stock in the Auto-Tires-Trucks sector, Modine (MOD), has outperformed the sector so far this year. The stock's year-to-date return is 205.7%.
For Modine, the consensus EPS estimate for the current year has increased 5.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CarGurus belongs to the Automotive - Replacement Parts industry, a group that includes 7 individual stocks and currently sits at #222 in the Zacks Industry Rank. This group has lost an average of 9.6% so far this year, so CARG is performing better in this area.
In contrast, Modine falls under the Automotive - Original Equipment industry. Currently, this industry has 56 stocks and is ranked #144. Since the beginning of the year, the industry has moved +9%.
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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CarGurus, Inc. (CARG) : Free Stock Analysis Report
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