Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. FedEx (FDX) 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? Let's take a closer look at the stock's year-to-date performance to find out.
FedEx is one of 115 individual stocks in the Transportation sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
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. FedEx is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for FDX's full-year earnings has moved 2.5% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, FDX has returned 5.3% so far this year. Meanwhile, the Transportation sector has returned an average of 4.7% on a year-to-date basis. This shows that FedEx is outperforming its peers so far this year.
Another stock in the Transportation sector, LATAM (LTM), has outperformed the sector so far this year. The stock's year-to-date return is 17.8%.
For LATAM, the consensus EPS estimate for the current year has increased 4.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, FedEx belongs to the Transportation - Air Freight and Cargo industry, a group that includes 3 individual stocks and currently sits at #46 in the Zacks Industry Rank. On average, this group has lost an average of 4.8% so far this year, meaning that FDX is performing better in terms of year-to-date returns.
LATAM, however, belongs to the Transportation - Airline industry. Currently, this 24-stock industry is ranked #85. The industry has moved +17.5% so far this year.
Investors with an interest in Transportation stocks should continue to track FedEx and LATAM. These stocks will be looking to continue their solid performance.
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FedEx Corporation (FDX): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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