Is Michelin (MGDDY) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?
For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Michelin (MGDDY) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Michelin is one of 123 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #9 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Michelin is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for MGDDY's full-year earnings has moved 3.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, MGDDY has moved about 11.3% on a year-to-date basis. In comparison, Auto-Tires-Trucks companies have returned an average of -52.9%. This means that Michelin is outperforming the sector as a whole this year.
Ferrari (RACE) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 8.3%.
The consensus estimate for Ferrari's current year EPS has increased 1.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Michelin is a member of the Rubber - Tires industry, which includes 3 individual companies and currently sits at #203 in the Zacks Industry Rank. On average, this group has lost an average of 46.6% so far this year, meaning that MGDDY is performing better in terms of year-to-date returns.
Ferrari, however, belongs to the Automotive - Original Equipment industry. Currently, this 62-stock industry is ranked #143. The industry has moved -32.6% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Michelin and Ferrari as they could maintain their solid performance.
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