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Is Leonardo DRS, Inc. (DRS) Stock Outpacing Its Aerospace Peers This Year?

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The Aerospace group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Leonardo DRS, Inc. (DRS - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Leonardo DRS, Inc. is one of 46 individual stocks in the Aerospace sector. Collectively, these companies sit at #3 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 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. Leonardo DRS, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for DRS' full-year earnings has moved 8.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, DRS has returned 59.5% so far this year. Meanwhile, the Aerospace sector has returned an average of 0.1% on a year-to-date basis. This means that Leonardo DRS, Inc. is performing better than its sector in terms of year-to-date returns.

Another stock in the Aerospace sector, Mercury Systems (MRCY - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 4.1%.

In Mercury Systems' case, the consensus EPS estimate for the current year increased 72.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Leonardo DRS, Inc. belongs to the Aerospace - Defense Equipment industry, which includes 23 individual stocks and currently sits at #45 in the Zacks Industry Rank. On average, stocks in this group have gained 31.9% this year, meaning that DRS is performing better in terms of year-to-date returns. Mercury Systems is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Leonardo DRS, Inc. and Mercury Systems as they could maintain their solid performance.


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