Investors interested in Conglomerates stocks should always be looking to find the best-performing companies in the group. Has Federal Signal (FSS) been one of those stocks this year? 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 16 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for FSS' full-year earnings has moved 2.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that FSS has returned about 24.8% since the start of the calendar year. At the same time, Conglomerates stocks have lost an average of 2.3%. This means that Federal Signal is performing better than its sector in terms of year-to-date returns.
Another Conglomerates stock, which has outperformed the sector so far this year, is ITT (ITT). The stock has returned 29.9% year-to-date.
The consensus estimate for ITT's current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Federal Signal belongs to the Diversified Operations industry, a group that includes 16 individual companies and currently sits at #42 in the Zacks Industry Rank. On average, this group has lost an average of 2.3% so far this year, meaning that FSS is performing better in terms of year-to-date returns. ITT is also part of the same industry.
Investors interested in the Conglomerates sector may want to keep a close eye on Federal Signal and ITT as they attempt to continue their solid performance.
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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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