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Is Danaos (DAC) Stock Outpacing Its Transportation Peers This Year?

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The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Danaos (DAC - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

Danaos is a member of the Transportation sector. This group includes 139 individual stocks and currently holds a Zacks Sector Rank of #14. 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 model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Danaos is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DAC's full-year earnings has moved 49% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, DAC has gained about 7.9% so far this year. At the same time, Transportation stocks have gained an average of 4.1%. This means that Danaos is performing better than its sector in terms of year-to-date returns.

Another Transportation stock, which has outperformed the sector so far this year, is Matson (MATX - Free Report) . The stock has returned 5.2% year-to-date.

In Matson's case, the consensus EPS estimate for the current year increased 81.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Danaos belongs to the Transportation - Shipping industry, a group that includes 43 individual companies and currently sits at #188 in the Zacks Industry Rank. On average, stocks in this group have gained 58.4% this year, meaning that DAC is slightly underperforming its industry in terms of year-to-date returns.

Matson, however, belongs to the Transportation - Services industry. Currently, this 29-stock industry is ranked #172. The industry has moved +3.4% so far this year.

Investors interested in the Transportation sector may want to keep a close eye on Danaos and Matson as they attempt to continue their solid performance.


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