Is Teekay Tankers (TNK) Outperforming Other Transportation Stocks This Year?
For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Teekay Tankers (TNK) one of those stocks right now? 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.
Teekay Tankers is one of 133 companies in the Transportation group. The Transportation group currently sits at #9 within 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 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. Teekay Tankers is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for TNK's full-year earnings has moved 60.9% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
Based on the most recent data, TNK has returned 6.3% so far this year. At the same time, Transportation stocks have gained an average of 4%. This means that Teekay Tankers is outperforming the sector as a whole this year.
One other Transportation stock that has outperformed the sector so far this year is Frontier Group Holdings (ULCC). The stock is up 37.4% year-to-date.
In Frontier Group Holdings' case, the consensus EPS estimate for the current year increased 88.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Teekay Tankers belongs to the Transportation - Shipping industry, a group that includes 37 individual stocks and currently sits at #52 in the Zacks Industry Rank. Stocks in this group have gained about 10% so far this year, so TNK is slightly underperforming its industry this group in terms of year-to-date returns.
Frontier Group Holdings, however, belongs to the Transportation - Airline industry. Currently, this 32-stock industry is ranked #81. The industry has moved +0.7% so far this year.
Teekay Tankers and Frontier Group Holdings could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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