Is Danaos (DAC) Stock Outpacing Its Transportation Peers This Year?
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Danaos (DAC) 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 Transportation sector should help us answer this question.
Danaos is a member of our Transportation group, which includes 131 different companies and currently sits at #14 in the Zacks Sector Rank. 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. Danaos is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for DAC's full-year earnings has moved 3.1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, DAC has gained about 21.6% so far this year. At the same time, Transportation stocks have gained an average of 7.4%. As we can see, Danaos is performing better than its sector in the calendar year.
Another stock in the Transportation sector, Greenbrier Companies (GBX), has outperformed the sector so far this year. The stock's year-to-date return is 16.9%.
Over the past three months, Greenbrier Companies' consensus EPS estimate for the current year has increased 26%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Danaos belongs to the Transportation - Shipping industry, a group that includes 38 individual stocks and currently sits at #183 in the Zacks Industry Rank. This group has gained an average of 10.7% so far this year, so DAC is performing better in this area.
Greenbrier Companies, however, belongs to the Transportation - Equipment and Leasing industry. Currently, this 11-stock industry is ranked #28. The industry has moved +9% so far this year.
Danaos and Greenbrier Companies could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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