Back to top

Image: Bigstock

Are Industrial Products Stocks Lagging Sonoco (SON) This Year?

Read MoreHide Full Article

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Sonoco (SON - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Industrial Products sector should help us answer this question.

Sonoco is one of 229 individual stocks in the Industrial Products sector. Collectively, these companies sit at #6 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 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. Sonoco is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for SON's full-year earnings has moved 15.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the latest available data, SON has gained about 2.2% so far this year. Meanwhile, the Industrial Products sector has returned an average of -14.3% on a year-to-date basis. As we can see, Sonoco is performing better than its sector in the calendar year.

Another Industrial Products stock, which has outperformed the sector so far this year, is Tenaris S.A. (TS - Free Report) . The stock has returned 65.2% year-to-date.

In Tenaris S.A.'s case, the consensus EPS estimate for the current year increased 23.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Sonoco is a member of the Containers - Paper and Packaging industry, which includes 12 individual companies and currently sits at #31 in the Zacks Industry Rank. On average, this group has gained an average of 3.3% so far this year, meaning that SON is slightly underperforming its industry in terms of year-to-date returns.

On the other hand, Tenaris S.A. belongs to the Steel - Pipe and Tube industry. This 4-stock industry is currently ranked #18. The industry has moved +38.7% year to date.

Sonoco and Tenaris S.A. could continue their solid performance, so investors interested in Industrial Products stocks should continue to pay close attention to these stocks.


See More Zacks Research for These Tickers


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


Sonoco Products Company (SON) - free report >>

Tenaris S.A. (TS) - free report >>

Published in