Is Golar LNG Limited (GLNG) 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. Golar LNG (GLNG) 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.
Golar LNG is one of 141 companies in the Transportation group. The Transportation group currently sits at #2 within 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. Golar LNG is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for GLNG's full-year earnings has moved 93.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, GLNG has gained about 81.6% so far this year. Meanwhile, the Transportation sector has returned an average of -10.3% on a year-to-date basis. This means that Golar LNG is performing better than its sector in terms of year-to-date returns.
Another stock in the Transportation sector, C.H. Robinson Worldwide (CHRW), has outperformed the sector so far this year. The stock's year-to-date return is 0.6%.
Over the past three months, C.H. Robinson Worldwide's consensus EPS estimate for the current year has increased 12.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Golar LNG belongs to the Transportation - Shipping industry, a group that includes 43 individual stocks and currently sits at #28 in the Zacks Industry Rank. Stocks in this group have gained about 25.6% so far this year, so GLNG is performing better this group in terms of year-to-date returns.
On the other hand, C.H. Robinson Worldwide belongs to the Transportation - Services industry. This 30-stock industry is currently ranked #154. The industry has moved -11.9% year to date.
Going forward, investors interested in Transportation stocks should continue to pay close attention to Golar LNG and C.H. Robinson Worldwide as they could maintain their solid performance.
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