For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Elbit Systems (ESLT) 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.
Elbit Systems 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 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 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. Elbit Systems is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ESLT's full-year earnings has moved 10.7% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ESLT has moved about 66.6% on a year-to-date basis. Meanwhile, the Aerospace sector has returned an average of 26.9% on a year-to-date basis. As we can see, Elbit Systems is performing better than its sector in the calendar year.
Another Aerospace stock, which has outperformed the sector so far this year, is GE Aerospace (GE). The stock has returned 56.1% year-to-date.
The consensus estimate for GE Aerospace's current year EPS has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Elbit Systems belongs to the Aerospace - Defense Equipment industry, a group that includes 33 individual stocks and currently sits at #74 in the Zacks Industry Rank. On average, stocks in this group have gained 28.1% this year, meaning that ESLT is performing better in terms of year-to-date returns.
In contrast, GE Aerospace falls under the Aerospace - Defense industry. Currently, this industry has 24 stocks and is ranked #86. Since the beginning of the year, the industry has moved +26.4%.
Investors interested in the Aerospace sector may want to keep a close eye on Elbit Systems and GE Aerospace as they attempt to continue their solid performance.
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Elbit Systems Ltd. (ESLT): Free Stock Analysis Report GE Aerospace (GE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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