Has Leonardo DRS, Inc. (DRS) Outpaced Other Aerospace Stocks This Year?

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Leonardo DRS, Inc. (DRS) been one of those stocks this year? 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.

Leonardo DRS, Inc. is one of 54 companies in the Aerospace group. The Aerospace group currently sits at #1 within 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. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DRS' full-year earnings has moved 0.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, DRS has returned 38.2% so far this year. Meanwhile, stocks in the Aerospace group have gained about 19.2% on average. As we can see, Leonardo DRS, Inc. is performing better than its sector in the calendar year.

Another stock in the Aerospace sector, Elbit Systems (ESLT), has outperformed the sector so far this year. The stock's year-to-date return is 66.5%.

Over the past three months, Elbit Systems' consensus EPS estimate for the current year has increased 22.6%. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Leonardo DRS, Inc. is a member of the Aerospace - Defense Equipment industry, which includes 27 individual companies and currently sits at #30 in the Zacks Industry Rank. Stocks in this group have gained about 18.6% so far this year, so DRS is performing better this group in terms of year-to-date returns. Elbit Systems is also part of the same industry.

Investors interested in the Aerospace sector may want to keep a close eye on Leonardo DRS, Inc. and Elbit Systems as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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