Back to top

Image: Bigstock

Is Desktop Metal (DM) Stock Outpacing Its Industrial Products Peers This Year?

Read MoreHide Full Article

For those looking to find strong Industrial Products stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Desktop Metal, Inc. (DM - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Industrial Products peers, we might be able to answer that question.

Desktop Metal, Inc. is a member of the Industrial Products sector. This group includes 219 individual stocks and currently holds a Zacks Sector Rank of #1. 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 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. Desktop Metal, Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DM's full-year earnings has moved 31% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, DM has returned 47.1% so far this year. Meanwhile, stocks in the Industrial Products group have lost about 0.5% on average. As we can see, Desktop Metal, Inc. is performing better than its sector in the calendar year.

Another Industrial Products stock, which has outperformed the sector so far this year, is Energy Recovery (ERII - Free Report) . The stock has returned 4.5% year-to-date.

In Energy Recovery's case, the consensus EPS estimate for the current year increased 48.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Desktop Metal, Inc. belongs to the Manufacturing - Print industry, which includes 1 individual stocks and currently sits at #5 in the Zacks Industry Rank. On average, this group has gained an average of 31.6% so far this year, meaning that DM is performing better in terms of year-to-date returns.

In contrast, Energy Recovery falls under the Pollution Control industry. Currently, this industry has 8 stocks and is ranked #81. Since the beginning of the year, the industry has moved +2.7%.

Going forward, investors interested in Industrial Products stocks should continue to pay close attention to Desktop Metal, Inc. and Energy Recovery as they could maintain their solid performance.


See More Zacks Research for These Tickers


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


Energy Recovery, Inc. (ERII) - free report >>

Desktop Metal, Inc. (DM) - free report >>

Published in