The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Ducommun (DCO) 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 Aerospace peers, we might be able to answer that question.
Ducommun is one of 58 individual stocks in the Aerospace sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. 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. Ducommun is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for DCO's full-year earnings has moved 12% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, DCO has returned 35.9% so far this year. At the same time, Aerospace stocks have gained an average of 26.3%. This means that Ducommun is outperforming the sector as a whole this year.
Another Aerospace stock, which has outperformed the sector so far this year, is Airbus Group (EADSY). The stock has returned 33.4% year-to-date.
In Airbus Group's case, the consensus EPS estimate for the current year increased 5.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Ducommun is a member of the Aerospace - Defense Equipment industry, which includes 33 individual companies and currently sits at #73 in the Zacks Industry Rank. On average, this group has gained an average of 26.1% so far this year, meaning that DCO is performing better in terms of year-to-date returns.
In contrast, Airbus Group falls under the Aerospace - Defense industry. Currently, this industry has 24 stocks and is ranked #87. Since the beginning of the year, the industry has moved +26.4%.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to Ducommun and Airbus Group as they could maintain their solid performance.
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Ducommun Incorporated (DCO): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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