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Is Safe Bulkers (SB) Outperforming Other Transportation Stocks 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. Safe Bulkers (SB - 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 Transportation sector should help us answer this question.

Safe Bulkers is one of 141 companies in the Transportation group. The Transportation group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. Safe Bulkers is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for SB's full-year earnings has moved 7.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, SB has moved about 18.3% on a year-to-date basis. Meanwhile, stocks in the Transportation group have lost about 13.8% on average. This shows that Safe Bulkers is outperforming its peers so far this year.

Star Bulk Carriers (SBLK - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.3%.

In Star Bulk Carriers' case, the consensus EPS estimate for the current year increased 22.7% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Breaking things down more, Safe Bulkers is a member of the Transportation - Shipping industry, which includes 43 individual companies and currently sits at #28 in the Zacks Industry Rank. On average, stocks in this group have gained 31% this year, meaning that SB is slightly underperforming its industry in terms of year-to-date returns. Star Bulk Carriers is also part of the same industry.

Investors with an interest in Transportation stocks should continue to track Safe Bulkers and Star Bulk Carriers. These stocks will be looking to continue their solid performance.


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