Are Industrial Products Stocks Lagging DNOW INC (DNOW) This Year?
For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. DNOW (DNOW) 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 Industrial Products sector should help us answer this question.
DNOW is one of 226 companies in the Industrial Products group. The Industrial Products group currently sits at #3 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. DNOW is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DNOW's full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, DNOW has moved about 31.1% on a year-to-date basis. Meanwhile, stocks in the Industrial Products group have gained about 7.9% on average. As we can see, DNOW 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 Tetra Tech (TTEK). The stock is up 11.9% year-to-date.
In Tetra Tech's case, the consensus EPS estimate for the current year increased 2.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, DNOW belongs to the Manufacturing - General Industrial industry, which includes 43 individual stocks and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 8.2% so far this year, so DNOW is performing better this group in terms of year-to-date returns.
Tetra Tech, however, belongs to the Pollution Control industry. Currently, this 11-stock industry is ranked #88. The industry has moved +9.8% so far this year.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to DNOW and Tetra Tech as they could maintain their solid performance.
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