Are Auto-Tires-Trucks Stocks Lagging Dorman Products (DORM) This Year?
Investors interested in Auto-Tires-Trucks stocks should always be looking to find the best-performing companies in the group. Dorman Products (DORM) 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 Auto-Tires-Trucks peers, we might be able to answer that question.
Dorman Products is one of 108 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #11 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 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. Dorman Products is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for DORM's full-year earnings has moved 6.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, DORM has returned 17% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 12.6% on average. This means that Dorman Products 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 Michelin (MGDDY). The stock is up 6.2% year-to-date.
Over the past three months, Michelin's consensus EPS estimate for the current year has increased 9.1%. The stock currently has a Zacks Rank #1 (Strong Buy).
Breaking things down more, Dorman Products is a member of the Automotive - Replacement Parts industry, which includes 7 individual companies and currently sits at #238 in the Zacks Industry Rank. On average, this group has gained an average of 8.2% so far this year, meaning that DORM is performing better in terms of year-to-date returns.
In contrast, Michelin falls under the Rubber - Tires industry. Currently, this industry has 3 stocks and is ranked #26. Since the beginning of the year, the industry has moved -6.2%.
Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to Dorman Products and Michelin as they could maintain their solid performance.
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