The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. ADT (ADT) 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 Industrial Products peers, we might be able to answer that question.
ADT is one of 189 companies in the Industrial Products group. The Industrial Products group currently sits at #1 within 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 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. ADT is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for ADT's full-year earnings has moved 8% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, ADT has returned 20.7% so far this year. In comparison, Industrial Products companies have returned an average of 9.2%. This shows that ADT is outperforming its peers so far this year.
One other Industrial Products stock that has outperformed the sector so far this year is Ashtead Group PLC (ASHTY). The stock is up 12.7% year-to-date.
For Ashtead Group PLC, the consensus EPS estimate for the current year has increased 3.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, ADT belongs to the Security and Safety Services industry, which includes 16 individual stocks and currently sits at #91 in the Zacks Industry Rank. On average, this group has gained an average of 13.7% so far this year, meaning that ADT is performing better in terms of year-to-date returns.
On the other hand, Ashtead Group PLC belongs to the Industrial Services industry. This 18-stock industry is currently ranked #14. The industry has moved +7.6% year to date.
Going forward, investors interested in Industrial Products stocks should continue to pay close attention to ADT and Ashtead Group PLC as they could maintain their solid performance.
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ADT Inc. (ADT): Free Stock Analysis Report Ashtead Group PLC (ASHTY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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