Is DHT (DHT) Stock Outpacing Its Transportation Peers This Year?

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is DHT Holdings (DHT) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

DHT Holdings is one of 122 individual stocks in the Transportation sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. DHT Holdings is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DHT's full-year earnings has moved 5.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, DHT has gained about 22.5% so far this year. Meanwhile, the Transportation sector has returned an average of -4.5% on a year-to-date basis. This shows that DHT Holdings is outperforming its peers so far this year.

Another Transportation stock, which has outperformed the sector so far this year, is Flex LNG (FLNG). The stock has returned 1% year-to-date.

For Flex LNG, the consensus EPS estimate for the current year has increased 12.1% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, DHT Holdings belongs to the Transportation - Shipping industry, which includes 38 individual stocks and currently sits at #28 in the Zacks Industry Rank. On average, this group has lost an average of 1.7% so far this year, meaning that DHT is performing better in terms of year-to-date returns. Flex LNG is also part of the same industry.

Going forward, investors interested in Transportation stocks should continue to pay close attention to DHT Holdings and Flex LNG as they could maintain their solid performance.

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

Zacks Investment Research