For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Caterpillar (CAT) 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? Let's take a closer look at the stock's year-to-date performance to find out.
Caterpillar is one of 221 companies in the Industrial Products group. The Industrial Products group currently sits at #1 within 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 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. Caterpillar is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CAT's full-year earnings has moved 8.9% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CAT has returned 0.8% so far this year. In comparison, Industrial Products companies have returned an average of -11.1%. This shows that Caterpillar is outperforming its peers so far this year.
Another Industrial Products stock, which has outperformed the sector so far this year, is CECO Environmental (CECO). The stock has returned 1.5% year-to-date.
The consensus estimate for CECO Environmental's current year EPS has increased 19.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
To break things down more, Caterpillar belongs to the Manufacturing - Construction and Mining industry, a group that includes 7 individual companies and currently sits at #173 in the Zacks Industry Rank. This group has gained an average of 16.7% so far this year, so CAT is slightly underperforming its industry in this area.
In contrast, CECO Environmental falls under the Pollution Control industry. Currently, this industry has 8 stocks and is ranked #21. Since the beginning of the year, the industry has moved -12.5%.
Investors interested in the Industrial Products sector may want to keep a close eye on Caterpillar and CECO Environmental as they attempt to continue their solid performance.
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Free: See Our Top Stock And 4 Runners UpCaterpillar Inc. (CAT) : Free Stock Analysis Report
CECO Environmental Corp. (CECO) : Free Stock Analysis Report
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