For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. SkyWest (SKYW) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
SkyWest is one of 121 individual stocks in the Transportation sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. SkyWest is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for SKYW's full-year earnings has moved 7.2% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, SKYW has moved about 3% on a year-to-date basis. At the same time, Transportation stocks have lost an average of 4.6%. This means that SkyWest is outperforming the sector as a whole this year.
One other Transportation stock that has outperformed the sector so far this year is Westinghouse Air Brake Technologies (WAB). The stock is up 2.6% year-to-date.
For Westinghouse Air Brake Technologies, the consensus EPS estimate for the current year has increased 1.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, SkyWest belongs to the Transportation - Airline industry, a group that includes 25 individual companies and currently sits at #85 in the Zacks Industry Rank. On average, this group has gained an average of 7.6% so far this year, meaning that SKYW is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, Westinghouse Air Brake Technologies belongs to the Transportation - Equipment and Leasing industry. This 11-stock industry is currently ranked #72. The industry has moved +10.4% year to date.
Investors with an interest in Transportation stocks should continue to track SkyWest and Westinghouse Air Brake Technologies. These stocks will be looking to continue their solid performance.
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SkyWest, Inc. (SKYW): Free Stock Analysis Report Wabtec (WAB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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