Is Polaris (PII) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Polaris Inc (PII) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

Polaris Inc is one of 99 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #9 in 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 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. Polaris Inc is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for PII's full-year earnings has moved 98.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that PII has returned about 13.9% since the start of the calendar year. At the same time, Auto-Tires-Trucks stocks have gained an average of 13%. This means that Polaris Inc is performing better than its sector in terms of year-to-date returns.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is XPeng Inc. Sponsored ADR (XPEV). The stock has returned 84.4% year-to-date.

For XPeng Inc. Sponsored ADR, the consensus EPS estimate for the current year has increased 20.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Polaris Inc belongs to the Automotive - Domestic industry, a group that includes 14 individual companies and currently sits at #90 in the Zacks Industry Rank. On average, this group has gained an average of 17.5% so far this year, meaning that PII is slightly underperforming its industry in terms of year-to-date returns.

XPeng Inc. Sponsored ADR, however, belongs to the Automotive - Foreign industry. Currently, this 24-stock industry is ranked #184. The industry has moved +2.8% so far this year.

Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Polaris Inc and XPeng Inc. Sponsored ADR as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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