Here is how Lear (LEA) and Magna (MGA) 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. Is Lear (LEA) one of those stocks right now? 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.
Lear is one of 101 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
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. Lear is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LEA's full-year earnings has moved 3.4% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, LEA has moved about 7.5% on a year-to-date basis. In comparison, Auto-Tires-Trucks companies have returned an average of -13.8%. This means that Lear is performing better than its sector in terms of year-to-date returns.
Magna (MGA) is another Auto-Tires-Trucks stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 9.3%.
In Magna's case, the consensus EPS estimate for the current year increased 13.9% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Lear is a member of the Automotive - Original Equipment industry, which includes 52 individual companies and currently sits at #149 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so LEA is performing better in this area. Magna is also part of the same industry.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Lear and Magna as they attempt to continue their solid performance.
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