For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Delta Air Lines (DAL) 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.
Delta Air Lines is one of 122 individual stocks in the Transportation sector. Collectively, these companies sit at #7 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. Delta Air Lines is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DAL's full-year earnings has moved 6.4% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, DAL has gained about 11.1% so far this year. At the same time, Transportation stocks have lost an average of 0.1%. As we can see, Delta Air Lines is performing better than its sector in the calendar year.
Teekay Tankers (TNK) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 39.1%.
Over the past three months, Teekay Tankers' consensus EPS estimate for the current year has increased 8.8%. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Delta Air Lines belongs to the Transportation - Airline industry, a group that includes 26 individual stocks and currently sits at #86 in the Zacks Industry Rank. On average, this group has gained an average of 11% so far this year, meaning that DAL is performing better in terms of year-to-date returns.
On the other hand, Teekay Tankers belongs to the Transportation - Shipping industry. This 39-stock industry is currently ranked #30. The industry has moved +13.2% year to date.
Investors with an interest in Transportation stocks should continue to track Delta Air Lines and Teekay Tankers. These stocks will be looking to continue their solid performance.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report Teekay Tankers Ltd. (TNK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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