Is Frontline (FRO) Stock Outpacing Its Transportation Peers This Year?
For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Frontline (FRO) 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 Transportation peers, we might be able to answer that question.
Frontline is one of 138 individual stocks in the Transportation sector. Collectively, these companies sit at #8 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 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. Frontline is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for FRO's full-year earnings has moved 81.3% 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, FRO has returned 89.5% so far this year. Meanwhile, the Transportation sector has returned an average of -13.8% on a year-to-date basis. This shows that Frontline is outperforming its peers so far this year.
Another stock in the Transportation sector, United Airlines (UAL), has outperformed the sector so far this year. The stock's year-to-date return is 2.1%.
Over the past three months, United Airlines' consensus EPS estimate for the current year has increased 297.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Frontline belongs to the Transportation - Shipping industry, a group that includes 41 individual stocks and currently sits at #130 in the Zacks Industry Rank. This group has gained an average of 36.1% so far this year, so FRO is performing better in this area.
On the other hand, United Airlines belongs to the Transportation - Airline industry. This 29-stock industry is currently ranked #53. The industry has moved -15.2% year to date.
Frontline and United Airlines could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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