For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Freightcar America (RAIL) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Freightcar America is one of 121 companies in the Transportation group. The Transportation group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Freightcar America is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for RAIL's full-year earnings has moved 26.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that RAIL has returned about 1.6% since the start of the calendar year. At the same time, Transportation stocks have lost an average of 5.4%. This shows that Freightcar America is outperforming its peers so far this year.
REV Group (REVG) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 84.9%.
The consensus estimate for REV Group's current year EPS has increased 8.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Freightcar America is a member of the Transportation - Equipment and Leasing industry, which includes 11 individual companies and currently sits at #75 in the Zacks Industry Rank. On average, this group has gained an average of 8% so far this year, meaning that RAIL is slightly underperforming its industry in terms of year-to-date returns.
In contrast, REV Group falls under the Transportation - Services industry. Currently, this industry has 23 stocks and is ranked #203. Since the beginning of the year, the industry has moved +1%.
Investors with an interest in Transportation stocks should continue to track Freightcar America and REV Group. These stocks will be looking to continue their solid performance.
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Freightcar America, Inc. (RAIL): Free Stock Analysis Report REV Group, Inc. (REVG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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