For those looking to find strong Conglomerates stocks, it is prudent to search for companies in the group that are outperforming their peers. Marubeni Corp. (MARUY) 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Conglomerates sector should help us answer this question.
Marubeni Corp. is one of 15 individual stocks in the Conglomerates sector. Collectively, these companies sit at #12 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 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. Marubeni Corp. is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for MARUY's full-year earnings has moved 19.6% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, MARUY has returned 63.6% so far this year. At the same time, Conglomerates stocks have gained an average of 0%. This shows that Marubeni Corp. is outperforming its peers so far this year.
Another Conglomerates stock, which has outperformed the sector so far this year, is Sumitomo Corp. (SSUMY). The stock has returned 35.2% year-to-date.
The consensus estimate for Sumitomo Corp.'s current year EPS has increased 2.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Marubeni Corp. belongs to the Diversified Operations industry, a group that includes 15 individual companies and currently sits at #156 in the Zacks Industry Rank. Stocks in this group have gained about 0% so far this year, so MARUY is performing better this group in terms of year-to-date returns. Sumitomo Corp. is also part of the same industry.
Investors interested in the Conglomerates sector may want to keep a close eye on Marubeni Corp. and Sumitomo Corp. as they attempt to continue their solid performance.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
