Has Denso Corp. (DNZOY) Outpaced Other Auto-Tires-Trucks Stocks 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. Denso Corp. (DNZOY) 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 Auto-Tires-Trucks sector should help us answer this question.
Denso Corp. is a member of the Auto-Tires-Trucks sector. This group includes 126 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Denso Corp. is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DNZOY's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, DNZOY has gained about 3.7% so far this year. At the same time, Auto-Tires-Trucks stocks have gained an average of 0.5%. This means that Denso Corp. is performing better than its sector in terms of year-to-date returns.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is General Motors Company (GM). The stock has returned 5.4% year-to-date.
In General Motors Company's case, the consensus EPS estimate for the current year increased 2.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Denso Corp. is a member of the Automotive - Original Equipment industry, which includes 62 individual companies and currently sits at #184 in the Zacks Industry Rank. Stocks in this group have lost about 1.4% so far this year, so DNZOY is performing better this group in terms of year-to-date returns.
General Motors Company, however, belongs to the Automotive - Domestic industry. Currently, this 25-stock industry is ranked #96. The industry has moved -1.3% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Denso Corp. and General Motors Company as they could maintain their solid performance.
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