Are Industrial Products Stocks Lagging Terex (TEX) 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. Terex (TEX) 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.
Terex is a member of the Industrial Products sector. This group includes 217 individual stocks and currently holds a Zacks Sector Rank of #2. 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. Terex is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for TEX's full-year earnings has moved 21.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, TEX has moved about 34.6% on a year-to-date basis. Meanwhile, stocks in the Industrial Products group have gained about 6.9% on average. This shows that Terex is outperforming its peers so far this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is Tetra Tech (TTEK). The stock has returned 11.6% year-to-date.
In Tetra Tech's case, the consensus EPS estimate for the current year increased 2.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Terex belongs to the Manufacturing - Construction and Mining industry, a group that includes 6 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 2.4% so far this year, meaning that TEX is performing better in terms of year-to-date returns.
Tetra Tech, however, belongs to the Pollution Control industry. Currently, this 10-stock industry is ranked #98. The industry has moved +3.5% so far this year.
Terex and Tetra Tech 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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