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Is Frontline (FRO) 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. Frontline (FRO - 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.

Frontline is one of 138 individual stocks in the Transportation sector. Collectively, these companies sit at #7 in 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. Frontline is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for FRO's full-year earnings has moved 65.3% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

According to our latest data, FRO has moved about 53.3% on a year-to-date basis. Meanwhile, stocks in the Transportation group have lost about 23.9% on average. As we can see, Frontline is performing better than its sector in the calendar year.

One other Transportation stock that has outperformed the sector so far this year is Scorpio Tankers (STNG - Free Report) . The stock is up 218% year-to-date.

In Scorpio Tankers' case, the consensus EPS estimate for the current year increased 221.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Frontline belongs to the Transportation - Shipping industry, a group that includes 41 individual stocks and currently sits at #53 in the Zacks Industry Rank. On average, stocks in this group have gained 18.7% this year, meaning that FRO is performing better in terms of year-to-date returns. Scorpio Tankers is also part of the same industry.

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


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