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Is CarGurus (CARG) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies 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? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

CarGurus is one of 113 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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).

Over the past 90 days, the Zacks Consensus Estimate for CARG's full-year earnings has moved 21% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that CARG has returned about 52.2% since the start of the calendar year. In comparison, Auto-Tires-Trucks companies have returned an average of 33.6%. This means that CarGurus is performing better than its sector in terms of year-to-date returns.

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 160.8%.

Over the past three months, Modine's consensus EPS estimate for the current year has increased 11.4%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CarGurus belongs to the Automotive - Replacement Parts industry, a group that includes 7 individual stocks and currently sits at #213 in the Zacks Industry Rank. Stocks in this group have lost about 13.4% 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 #154. Since the beginning of the year, the industry has moved +7.7%.

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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Zacks Investment Research