Are Industrial Products Stocks Lagging A. O. Smith (AOS) This Year?
The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. A.O. Smith (AOS) 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.
A.O. Smith is a member of the Industrial Products sector. This group includes 217 individual stocks and currently holds a Zacks Sector Rank of #7. 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. A.O. Smith is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AOS' full-year earnings has moved 2.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, AOS has gained about 25.5% so far this year. In comparison, Industrial Products companies have returned an average of 5.9%. This shows that A.O. Smith is outperforming its peers so far this year.
Astec Industries (ASTE) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 11.9%.
The consensus estimate for Astec Industries' current year EPS has increased 18.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, A.O. Smith belongs to the Manufacturing - Electronics industry, a group that includes 16 individual stocks and currently sits at #102 in the Zacks Industry Rank. On average, this group has gained an average of 15.6% so far this year, meaning that AOS is performing better in terms of year-to-date returns.
Astec Industries, however, belongs to the Manufacturing - Construction and Mining industry. Currently, this 7-stock industry is ranked #15. The industry has moved +15.1% so far this year.
Investors interested in the Industrial Products sector may want to keep a close eye on A.O. Smith and Astec Industries as they attempt to continue their solid performance.
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
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Astec Industries, Inc. (ASTE) : Free Stock Analysis Report
