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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. Has CarGurus (CARG) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.
CarGurus is one of 102 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CarGurus is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CARG's full-year earnings has moved 4.1% 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, CARG has gained about 60.5% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of 11.1%. This means that CarGurus is outperforming the sector as a whole this year.
One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Geely Automobile Holdings Ltd. (GELYY). The stock is up 67.1% year-to-date.
The consensus estimate for Geely Automobile Holdings Ltd.'s current year EPS has increased 5.8% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, CarGurus belongs to the Automotive - Replacement Parts industry, which includes 6 individual stocks and currently sits at #32 in the Zacks Industry Rank. On average, stocks in this group have lost 38.9% this year, meaning that CARG is performing better in terms of year-to-date returns.
In contrast, Geely Automobile Holdings Ltd. falls under the Automotive - Foreign industry. Currently, this industry has 24 stocks and is ranked #74. Since the beginning of the year, the industry has moved -18.5%.
CarGurus and Geely Automobile Holdings Ltd. could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.
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