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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? Let's take a closer look at the stock's year-to-date performance to find out.
Rolls-Royce Holdings PLC is a member of the Aerospace sector. This group includes 51 individual stocks and currently holds a Zacks Sector Rank of #1. 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).
The Zacks Consensus Estimate for RYCEY's full-year earnings has moved 9.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, RYCEY has gained about 49.1% so far this year. At the same time, Aerospace stocks have gained an average of 1.3%. This means that Rolls-Royce Holdings PLC is outperforming the sector as a whole this year.
TransDigm Group (TDG) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 6.3%.
For TransDigm Group, the consensus EPS estimate for the current year has increased 2.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Rolls-Royce Holdings PLC belongs to the Aerospace - Defense Equipment industry, which includes 26 individual stocks and currently sits at #34 in the Zacks Industry Rank. On average, this group has gained an average of 2.2% so far this year, meaning that RYCEY is performing better in terms of year-to-date returns. 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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This article originally published on Zacks Investment Research (zacks.com).