The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Michelin (MGDDY) 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? 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.
Michelin is a member of the Auto-Tires-Trucks sector. This group includes 103 individual stocks and currently holds a Zacks Sector Rank of #10. 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. Michelin is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for MGDDY's full-year earnings has moved 4.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Our latest available data shows that MGDDY has returned about 21.3% since the start of the calendar year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 3.1% on average. This shows that Michelin is outperforming its peers so far this year.
Douglas Dynamics (PLOW) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 43.3%.
For Douglas Dynamics, the consensus EPS estimate for the current year has increased 9.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Michelin belongs to the Rubber - Tires industry, which includes 2 individual stocks and currently sits at #88 in the Zacks Industry Rank. This group has lost an average of 3.5% so far this year, so MGDDY is performing better in this area.
Douglas Dynamics, however, belongs to the Automotive - Replacement Parts industry. Currently, this 7-stock industry is ranked #151. The industry has moved +8.2% so far this year.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Michelin and Douglas Dynamics as they could maintain their solid performance.
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Michelin (MGDDY): Free Stock Analysis Report Douglas Dynamics, Inc. (PLOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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