For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is ADT (ADT) one of those stocks right now? 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 #3 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. ADT is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for ADT's full-year earnings has moved 8% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that ADT has returned about 26.1% since the start of the calendar year. In comparison, Industrial Products companies have returned an average of 6.8%. This means that ADT is performing better than its sector in terms of year-to-date returns.
Another stock in the Industrial Products sector, Napco (NSSC), has outperformed the sector so far this year. The stock's year-to-date return is 7%.
The consensus estimate for Napco's current year EPS has increased 23.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, ADT belongs to the Security and Safety Services industry, a group that includes 16 individual companies and currently sits at #23 in the Zacks Industry Rank. On average, stocks in this group have gained 21.3% this year, meaning that ADT is performing better in terms of year-to-date returns. Napco is also part of the same industry.
ADT and Napco could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.
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ADT Inc. (ADT): Free Stock Analysis Report NAPCO Security Technologies, Inc. (NSSC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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