Are Industrial Products Stocks Lagging ABB (ABBNY) This Year?
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ABB (ABBNY) 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 Industrial Products peers, we might be able to answer that question.
ABB is one of 223 individual stocks in the Industrial Products sector. Collectively, these companies sit at #6 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. ABB is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ABBNY's full-year earnings has moved 18.1% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the latest available data, ABBNY has gained about 28.5% so far this year. In comparison, Industrial Products companies have returned an average of 11.3%. As we can see, ABB is performing better than its sector in the calendar year.
One other Industrial Products stock that has outperformed the sector so far this year is A.O. Smith (AOS). The stock is up 27.2% year-to-date.
Over the past three months, A.O. Smith's consensus EPS estimate for the current year has increased 3.2%. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, ABB is a member of the Manufacturing - Electronics industry, which includes 17 individual companies and currently sits at #51 in the Zacks Industry Rank. This group has gained an average of 20.4% so far this year, so ABBNY is performing better in this area. A.O. Smith is also part of the same industry.
ABB and A.O. Smith could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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ABB Ltd (ABBNY) : Free Stock Analysis Report
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