Yahoo Finance Are Aerospace Stocks Lagging RollsRoyce (RYCEY) This Year?
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Rolls-Royce Holdings PLC (RYCEY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.
Rolls-Royce Holdings PLC is one of 46 companies in the Aerospace group. The Aerospace group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
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. Rolls-Royce Holdings PLC is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for RYCEY's full-year earnings has moved 15% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, RYCEY has gained about 72% so far this year. Meanwhile, the Aerospace sector has returned an average of 3.8% on a year-to-date basis. This means that Rolls-Royce Holdings PLC is performing better than its sector in terms of year-to-date returns.
One other Aerospace stock that has outperformed the sector so far this year is TransDigm Group (TDG). The stock is up 33.3% year-to-date.
Over the past three months, TransDigm Group's consensus EPS estimate for the current year has increased 2.3%. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Rolls-Royce Holdings PLC belongs to the Aerospace - Defense Equipment industry, a group that includes 23 individual companies and currently sits at #89 in the Zacks Industry Rank. This group has gained an average of 23.7% so far this year, so RYCEY is performing better in this area. TransDigm Group is also part of the same industry.
Rolls-Royce Holdings PLC and TransDigm Group could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.
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