Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Ducommun (DCO) one of those stocks right now? 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 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. Ducommun is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for DCO's full-year earnings has moved 2.3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, DCO has returned 47.5% so far this year. In comparison, Aerospace companies have returned an average of 24.8%. This shows that Ducommun is outperforming its peers so far this year.
Another stock in the Aerospace sector, Rolls-Royce Holdings PLC (RYCEY), has outperformed the sector so far this year. The stock's year-to-date return is 100.2%.
For Rolls-Royce Holdings PLC, the consensus EPS estimate for the current year has increased 10.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Ducommun belongs to the Aerospace - Defense Equipment industry, a group that includes 33 individual companies and currently sits at #78 in the Zacks Industry Rank. On average, stocks in this group have gained 23.7% this year, meaning that DCO is performing better in terms of year-to-date returns. Rolls-Royce Holdings PLC is also part of the same industry.
Investors with an interest in Aerospace stocks should continue to track Ducommun and Rolls-Royce Holdings PLC. These stocks will be looking to continue their solid performance.
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Ducommun Incorporated (DCO): Free Stock Analysis Report Rolls-Royce Holdings PLC (RYCEY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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