Back to top

Image: Bigstock

Is GARRETT MOTION (GTX) Outperforming Other Auto-Tires-Trucks Stocks This Year?

Read MoreHide Full Article

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Garrett Motion (GTX - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Auto-Tires-Trucks sector should help us answer this question.

Garrett Motion is one of 96 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #9 within 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Garrett Motion is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for GTX's full-year earnings has moved 11.9% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that GTX has returned about 39.2% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -13.1% on a year-to-date basis. As we can see, Garrett Motion is performing better than its sector in the calendar year.

Another stock in the Auto-Tires-Trucks sector, Modine (MOD - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 17.8%.

The consensus estimate for Modine's current year EPS has increased 0.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Garrett Motion is a member of the Automotive - Original Equipment industry, which includes 50 individual companies and currently sits at #95 in the Zacks Industry Rank. On average, stocks in this group have gained 1.1% this year, meaning that GTX is performing better in terms of year-to-date returns. Modine is also part of the same industry.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Garrett Motion and Modine. These stocks will be looking to continue their solid performance.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE: