Is GATX (GATX) 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. Is Gatx (GATX) one of those stocks right now? 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.
Gatx is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
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. Gatx is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for GATX's full-year earnings has moved 8.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, GATX has moved about 9.2% on a year-to-date basis. Meanwhile, the Transportation sector has returned an average of 3.6% on a year-to-date basis. This shows that Gatx is outperforming its peers so far this year.
One other Transportation stock that has outperformed the sector so far this year is Herc Holdings (HRI). The stock is up 9.9% year-to-date.
In Herc Holdings' case, the consensus EPS estimate for the current year increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Gatx belongs to the Transportation - Equipment and Leasing industry, which includes 9 individual stocks and currently sits at #22 in the Zacks Industry Rank. This group has gained an average of 9.7% so far this year, so GATX is slightly underperforming its industry in this area. Herc Holdings is also part of the same industry.
Gatx and Herc Holdings 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
GATX Corporation (GATX) : Free Stock Analysis Report
Herc Holdings Inc. (HRI) : Free Stock Analysis Report
