The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has FedEx (FDX) been one of those stocks this year? 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.
FedEx is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #7 in 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 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. FedEx is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for FDX's full-year earnings has moved 9.8% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, FDX has returned 30.7% so far this year. Meanwhile, stocks in the Transportation group have gained about 2.5% on average. This shows that FedEx is outperforming its peers so far this year.
Another stock in the Transportation sector, Sun Country Airlines Holdings, Inc. (SNCY), has outperformed the sector so far this year. The stock's year-to-date return is 8.1%.
In Sun Country Airlines Holdings, Inc.'s case, the consensus EPS estimate for the current year increased 26.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, FedEx belongs to the Transportation - Air Freight and Cargo industry, which includes 4 individual stocks and currently sits at #28 in the Zacks Industry Rank. On average, this group has gained an average of 7.7% so far this year, meaning that FDX is performing better in terms of year-to-date returns.
On the other hand, Sun Country Airlines Holdings, Inc. belongs to the Transportation - Airline industry. This 29-stock industry is currently ranked #41. The industry has moved +2.4% year to date.
FedEx and Sun Country Airlines Holdings, Inc. could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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