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Is Air Canada (ACDVF) Stock Outpacing Its Transportation Peers This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Air Canada (ACDVF - Free Report) 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? Let's take a closer look at the stock's year-to-date performance to find out.

Air Canada is one of 122 companies in the Transportation group. The Transportation group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Air Canada is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ACDVF's full-year earnings has moved 8.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ACDVF has returned 5.7% so far this year. In comparison, Transportation companies have returned an average of -3%. This means that Air Canada is outperforming the sector as a whole this year.

Another Transportation stock, which has outperformed the sector so far this year, is A.P. Moller-Maersk (AMKBY - Free Report) . The stock has returned 18% year-to-date.

Over the past three months, A.P. Moller-Maersk's consensus EPS estimate for the current year has increased 145.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Air Canada belongs to the Transportation - Airline industry, a group that includes 25 individual stocks and currently sits at #77 in the Zacks Industry Rank. On average, this group has gained an average of 3.8% so far this year, meaning that ACDVF is performing better in terms of year-to-date returns.

In contrast, A.P. Moller-Maersk falls under the Transportation - Shipping industry. Currently, this industry has 38 stocks and is ranked #29. Since the beginning of the year, the industry has moved -0.8%.

Air Canada and A.P. Moller-Maersk could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.


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