For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Cummins (CMI) 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.
Cummins is a member of our Auto-Tires-Trucks group, which includes 102 different companies and currently sits at #13 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. Cummins is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CMI's full-year earnings has moved 5.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Our latest available data shows that CMI has returned about 55.5% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of 10.8% on a year-to-date basis. This means that Cummins is outperforming the sector as a whole this year.
Another stock in the Auto-Tires-Trucks sector, Hyliion Holdings Corp. (HYLN), has outperformed the sector so far this year. The stock's year-to-date return is 371.9%.
Over the past three months, Hyliion Holdings Corp.'s consensus EPS estimate for the current year has increased 3.5%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Cummins belongs to the Automotive - Internal Combustion Engines industry, which includes 1 individual stocks and currently sits at #3 in the Zacks Industry Rank. Stocks in this group have gained about 55.5% so far this year, so CMI is performing on par this group in terms of year-to-date returns.
On the other hand, Hyliion Holdings Corp. belongs to the Automotive - Original Equipment industry. This 51-stock industry is currently ranked #175. The industry has moved -17.5% year to date.
Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Cummins and Hyliion Holdings Corp. as they attempt to continue their solid performance.
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Cummins Inc. (CMI) : Free Stock Analysis Report
Hyliion Holdings Corp. (HYLN) : 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.
