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Is Danaos (DAC) Stock Outpacing Its Transportation Peers This Year?

Zacks Equity Research

Investors focused on the Transportation space have likely heard of Danaos (DAC), but is the stock performing well in comparison to the rest of its sector peers? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.

Danaos is a member of the Transportation sector. This group includes 152 individual stocks and currently holds a Zacks Sector Rank of #15. 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. DAC is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DAC's full-year earnings has moved 29.55% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, DAC has gained about 22.68% so far this year. Meanwhile, stocks in the Transportation group have gained about 17.79% on average. This means that Danaos is performing better than its sector in terms of year-to-date returns.

Breaking things down more, DAC is a member of the Transportation - Shipping industry, which includes 48 individual companies and currently sits at #222 in the Zacks Industry Rank. On average, stocks in this group have gained 15.24% this year, meaning that DAC is performing better in terms of year-to-date returns.

Going forward, investors interested in Transportation stocks should continue to pay close attention to DAC as it looks to continue its solid performance.


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