Is China Automotive Systems (CAAS) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Is China Automotive Systems (CAAS) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
China Automotive Systems is one of 125 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #14 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 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. China Automotive Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CAAS' full-year earnings has moved 700% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, CAAS has moved about 49.6% on a year-to-date basis. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -40.2% on a year-to-date basis. This means that China Automotive Systems is outperforming the sector as a whole this year.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Cummins (CMI). The stock has returned 0.9% year-to-date.
The consensus estimate for Cummins' current year EPS has increased 2.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, China Automotive Systems belongs to the Automotive - Original Equipment industry, a group that includes 63 individual companies and currently sits at #162 in the Zacks Industry Rank. On average, this group has lost an average of 40.8% so far this year, meaning that CAAS is performing better in terms of year-to-date returns.
In contrast, Cummins falls under the Automotive - Internal Combustion Engines industry. Currently, this industry has 2 stocks and is ranked #90. Since the beginning of the year, the industry has moved +2.9%.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on China Automotive Systems and Cummins as they attempt to continue their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
China Automotive Systems, Inc. (CAAS) : Free Stock Analysis Report
Cummins Inc. (CMI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
