For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Rolls-Royce Holdings PLC (RYCEY) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
Rolls-Royce Holdings PLC is one of 53 companies in the Aerospace group. The Aerospace group currently sits at #2 within 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 successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Rolls-Royce Holdings PLC is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for RYCEY's full-year earnings has moved 17.9% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that RYCEY has returned about 36.1% since the start of the calendar year. In comparison, Aerospace companies have returned an average of 1.2%. This shows that Rolls-Royce Holdings PLC is outperforming its peers so far this year.
One other Aerospace stock that has outperformed the sector so far this year is Woodward (WWD). The stock is up 1.7% year-to-date.
In Woodward's case, the consensus EPS estimate for the current year increased 2.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, Rolls-Royce Holdings PLC is a member of the Aerospace - Defense Equipment industry, which includes 27 individual companies and currently sits at #21 in the Zacks Industry Rank. Stocks in this group have lost about 3.1% so far this year, so RYCEY is performing better this group in terms of year-to-date returns. Woodward is also part of the same industry.
Going forward, investors interested in Aerospace stocks should continue to pay close attention to Rolls-Royce Holdings PLC and Woodward as they could maintain their solid performance.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Rolls-Royce Holdings PLC (RYCEY): Free Stock Analysis Report Woodward, Inc. (WWD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
