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Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Delta Air Lines (DAL) 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? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
Delta Air Lines is one of 131 individual stocks in the Transportation sector. Collectively, these companies sit at #15 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Delta Air Lines is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for DAL's full-year earnings has moved 6.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that DAL has returned about 9.6% since the start of the calendar year. At the same time, Transportation stocks have lost an average of 2.1%. As we can see, Delta Air Lines is performing better than its sector in the calendar year.
Another Transportation stock, which has outperformed the sector so far this year, is Forward Air (FWRD). The stock has returned 5.9% year-to-date.
Over the past three months, Forward Air's consensus EPS estimate for the current year has increased 124.5%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Delta Air Lines is a member of the Transportation - Airline industry, which includes 28 individual companies and currently sits at #24 in the Zacks Industry Rank. On average, this group has gained an average of 37.4% so far this year, meaning that DAL is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Forward Air falls under the Transportation - Truck industry. Currently, this industry has 13 stocks and is ranked #219. Since the beginning of the year, the industry has moved -21.4%.
Investors with an interest in Transportation stocks should continue to track Delta Air Lines and Forward Air. These stocks will be looking to continue their solid performance.