Here is how China Yuchai (CYD) and Douglas Dynamics (PLOW) have performed compared to their sector so far this year.
The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. China Yuchai (CYD) 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 Auto-Tires-Trucks sector should help us answer this question.
China Yuchai is a member of our Auto-Tires-Trucks group, which includes 102 different companies and currently sits at #3 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 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. China Yuchai is currently sporting a Zacks Rank of #1 (Strong Buy).
The Zacks Consensus Estimate for CYD's full-year earnings has moved 40.5% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CYD has returned about 11% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -14.1% on a year-to-date basis. This means that China Yuchai is performing better than its sector in terms of year-to-date returns.
Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Douglas Dynamics (PLOW). The stock has returned 28.4% year-to-date.
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 #2 (Buy).
To break things down more, China Yuchai belongs to the Automotive - Original Equipment industry, a group that includes 53 individual companies and currently sits at #80 in the Zacks Industry Rank. Stocks in this group have lost about 6% so far this year, so CYD is performing better this group in terms of year-to-date returns.
In contrast, Douglas Dynamics falls under the Automotive - Replacement Parts industry. Currently, this industry has 7 stocks and is ranked #95. Since the beginning of the year, the industry has moved -3.9%.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to China Yuchai and Douglas Dynamics as they could maintain their solid performance.
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