Jhe industrials group has many attractive stocks, but investors should always look for companies that are outperforming their peers. Does Packaging Corp. (PKG) is one of those stocks right now? Looking at the stock’s year-to-date performance against its industrials peers, we might be able to answer that question.
Packaging Corp. is a member of our industrial products group, which includes 229 different companies and is currently ranked 5th in the Zacks industry rankings. The Zacks Industry Ranking considers 16 different industry groups. The average Zacks ranking of individual stocks within groups is measured and sectors are listed from best to worst.
The Zacks Ranking is a successful stock selection 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. Packaging Corp. currently sports a Zacks rating of #1 (Strong Buy).
The Zacks consensus estimate for PKG’s annual earnings rose 11.4% in the last quarter. This shows that analyst sentiment has improved and the company’s earnings outlook is stronger.
Based on the most recent data, PKG has returned 16.9% so far this year. Meanwhile, the industrials sector is posting an average return of -14% year-to-date. This means that Packaging Corp. outperforms the industry as a whole this year.
Another industrials stock that has outperformed the sector so far this year is Titan International (TWI). The stock has returned 69.8% since the start of the year.
In the case of Titan International, the current year EPS consensus estimate has risen 34.9% over the past three months. The stock currently has a Zacks #1 rank (Strong Buy).
Breaking it down further, Packaging Corp. is a member of the Containers – Paper and Packaging industry, which comprises 12 individual companies and is currently ranked 29th in the Zacks Industry Rankings. Shares in this group have gained about 3.4% so far this year, so PKG is doing better in this group in terms of year-to-date returns.
On the other hand, Titan International belongs to the Manufacturing – Agricultural Equipment industry. This 8-title industry is currently ranked #106. The industry has grown by +5.7% since the start of the year.
Going forward, investors interested in industrials stocks should continue to pay close attention to Packaging Corp. and Titan International as they could maintain their strong performance.
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