Are Transportation Stocks Lagging Danaos (DAC) This Year?
For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Danaos (DAC) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Danaos is a member of the Transportation sector. This group includes 131 individual stocks and currently holds a Zacks Sector Rank of #10. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Danaos is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DAC's full-year earnings has moved 3.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, DAC has returned 27.3% so far this year. In comparison, Transportation companies have returned an average of 10.3%. This means that Danaos is performing better than its sector in terms of year-to-date returns.
One other Transportation stock that has outperformed the sector so far this year is Frontline (FRO). The stock is up 52.4% year-to-date.
In Frontline's case, the consensus EPS estimate for the current year increased 8.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Danaos belongs to the Transportation - Shipping industry, a group that includes 38 individual companies and currently sits at #203 in the Zacks Industry Rank. On average, stocks in this group have gained 13.1% this year, meaning that DAC is performing better in terms of year-to-date returns. Frontline is also part of the same industry.
Danaos and Frontline could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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Danaos Corporation (DAC) : Free Stock Analysis Report
Frontline PLC (FRO) : Free Stock Analysis Report
