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Are Aerospace Stocks Lagging RollsRoyce (RYCEY) This Year?

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Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Rolls-Royce Holdings PLC (RYCEY - 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 Aerospace sector should help us answer this question.

Rolls-Royce Holdings PLC is one of 49 companies in the Aerospace group. The Aerospace group currently sits at #11 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 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. Rolls-Royce Holdings PLC is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for RYCEY's full-year earnings has moved 50% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, RYCEY has gained about 69.6% so far this year. At the same time, Aerospace stocks have lost an average of 3.2%. This means that Rolls-Royce Holdings PLC is performing better than its sector in terms of year-to-date returns.

Another stock in the Aerospace sector, TransDigm Group (TDG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 39.6%.

For TransDigm Group, the consensus EPS estimate for the current year has increased 3.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, Rolls-Royce Holdings PLC belongs to the Aerospace - Defense Equipment industry, which includes 23 individual stocks and currently sits at #164 in the Zacks Industry Rank. Stocks in this group have gained about 3.4% so far this year, so RYCEY is performing better this group in terms of year-to-date returns. TransDigm Group is also part of the same industry.

Going forward, investors interested in Aerospace stocks should continue to pay close attention to Rolls-Royce Holdings PLC and TransDigm Group as they could maintain their solid performance.


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