For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. DNOW (DNOW) 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.
DNOW is a member of the Industrial Products sector. This group includes 189 individual stocks and currently holds a Zacks Sector Rank of #2. 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. DNOW is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for DNOW's full-year earnings has moved 9.2% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, DNOW has gained about 20.8% so far this year. Meanwhile, the Industrial Products sector has returned an average of 7.6% on a year-to-date basis. As we can see, DNOW is performing better than its sector in the calendar year.
Another Industrial Products stock, which has outperformed the sector so far this year, is Donaldson (DCI). The stock has returned 21.2% year-to-date.
For Donaldson, the consensus EPS estimate for the current year has increased 4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, DNOW is a member of the Manufacturing - General Industrial industry, which includes 41 individual companies and currently sits at #49 in the Zacks Industry Rank. On average, this group has gained an average of 8.6% so far this year, meaning that DNOW is performing better in terms of year-to-date returns.
In contrast, Donaldson falls under the Pollution Control industry. Currently, this industry has 7 stocks and is ranked #30. Since the beginning of the year, the industry has moved +7.8%.
DNOW and Donaldson 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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DNOW Inc. (DNOW): Free Stock Analysis Report Donaldson Company, Inc. (DCI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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