Investors interested in Conglomerates stocks should always be looking to find the best-performing companies in the group. Is Federal Signal (FSS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Conglomerates sector should help us answer this question.
Federal Signal is one of 15 individual stocks in the Conglomerates sector. Collectively, these companies sit at #8 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for FSS' full-year earnings has moved 5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, FSS has moved about 38.2% on a year-to-date basis. Meanwhile, stocks in the Conglomerates group have gained about 1.1% on average. This means that Federal Signal is performing better than its sector in terms of year-to-date returns.
ITT (ITT) is another Conglomerates stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 28%.
Over the past three months, ITT's consensus EPS estimate for the current year has increased 2%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Federal Signal belongs to the Diversified Operations industry, which includes 15 individual stocks and currently sits at #102 in the Zacks Industry Rank. This group has gained an average of 1.1% so far this year, so FSS is performing better in this area. ITT is also part of the same industry.
Federal Signal and ITT could continue their solid performance, so investors interested in Conglomerates stocks should continue to pay close attention to these stocks.
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Federal Signal Corporation (FSS): Free Stock Analysis Report ITT Inc. (ITT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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