For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Esab (ESAB) been one of those stocks this year? 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.
Esab is one of 189 companies in the Industrial Products group. The Industrial Products group currently sits at #2 within the Zacks Sector Rank. 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 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. Esab is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ESAB's full-year earnings has moved 0.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ESAB has returned about 8.1% since the start of the calendar year. Meanwhile, stocks in the Industrial Products group have gained about 7.7% on average. This means that Esab is outperforming the sector as a whole this year.
Valmont Industries (VMI) is another Industrial Products stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 9.6%.
For Valmont Industries, the consensus EPS estimate for the current year has increased 0.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Esab is a member of the Metal Products - Procurement and Fabrication industry, which includes 8 individual companies and currently sits at #59 in the Zacks Industry Rank. This group has gained an average of 11.2% so far this year, so ESAB is slightly underperforming its industry in this area.
On the other hand, Valmont Industries belongs to the Steel - Pipe and Tube industry. This 4-stock industry is currently ranked #92. The industry has moved +1.9% year to date.
Investors with an interest in Industrial Products stocks should continue to track Esab and Valmont Industries. These stocks will be looking to continue their solid performance.
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ESAB Corporation (ESAB): Free Stock Analysis Report Valmont Industries, Inc. (VMI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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