For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Greenbrier Companies (GBX) 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 Transportation sector should help us answer this question.
Greenbrier Companies is a member of our Transportation group, which includes 131 different companies and currently sits at #16 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Greenbrier Companies is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past three months, the Zacks Consensus Estimate for GBX's full-year earnings has moved 13.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, GBX has returned 9% so far this year. Meanwhile, stocks in the Transportation group have gained about 2.6% on average. This means that Greenbrier Companies is outperforming the sector as a whole this year.
Another stock in the Transportation sector, Matson (MATX), has outperformed the sector so far this year. The stock's year-to-date return is 3.7%.
In Matson's case, the consensus EPS estimate for the current year increased 8.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Greenbrier Companies is a member of the Transportation - Equipment and Leasing industry, which includes 10 individual companies and currently sits at #153 in the Zacks Industry Rank. Stocks in this group have lost about 4.3% so far this year, so GBX is performing better this group in terms of year-to-date returns.
Matson, however, belongs to the Transportation - Services industry. Currently, this 25-stock industry is ranked #142. The industry has moved -10.3% so far this year.
Investors with an interest in Transportation stocks should continue to track Greenbrier Companies and Matson. These stocks will be looking to continue their solid performance.
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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Matson, Inc. (MATX) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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