The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Federal Signal (FSS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
Federal Signal is one of 99 individual stocks in the Auto-Tires-Trucks 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 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 3.8% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, FSS has gained about 20% so far this year. At the same time, Auto-Tires-Trucks stocks have gained an average of 12%. This means that Federal Signal is outperforming the sector as a whole this year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is OPENLANE (KAR). The stock is up 31.8% year-to-date.
Over the past three months, OPENLANE's consensus EPS estimate for the current year has increased 16.7%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Federal Signal is a member of the Automotive - Domestic industry, which includes 14 individual companies and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have gained about 16.2% so far this year, so FSS is performing better this group in terms of year-to-date returns.
OPENLANE, however, belongs to the Automotive - Original Equipment industry. Currently, this 51-stock industry is ranked #92. The industry has moved +1% so far this year.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Federal Signal and OPENLANE as they attempt to continue their solid performance.
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Federal Signal Corporation (FSS): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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