Has Constellium (CSTM) Outpaced Other Industrial Products Stocks This Year?
For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Constellium (CSTM) 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 Industrial Products peers, we might be able to answer that question.
Constellium is a member of the Industrial Products sector. This group includes 218 individual stocks and currently holds a Zacks Sector Rank of #3. 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 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. Constellium is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for CSTM's full-year earnings has moved 3.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CSTM has returned about 19.1% since the start of the calendar year. Meanwhile, the Industrial Products sector has returned an average of -2.8% on a year-to-date basis. This means that Constellium is performing better than its sector in terms of year-to-date returns.
Another Industrial Products stock, which has outperformed the sector so far this year, is Desktop Metal, Inc. (DM). The stock has returned 48.5% year-to-date.
Over the past three months, Desktop Metal, Inc.'s consensus EPS estimate for the current year has increased 20.6%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Constellium is a member of the Metal Products - Distribution industry, which includes 5 individual companies and currently sits at #28 in the Zacks Industry Rank. Stocks in this group have gained about 8.6% so far this year, so CSTM is performing better this group in terms of year-to-date returns.
On the other hand, Desktop Metal, Inc. belongs to the Manufacturing - Print industry. This 1-stock industry is currently ranked #6. The industry has moved +27.6% year to date.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Constellium and Desktop Metal, Inc. as they could maintain their solid performance.
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