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Is Air Canada (ACDVF) Stock Outpacing Its Transportation Peers 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. Air Canada (ACDVF - 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? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.

Air Canada is one of 131 individual stocks in the Transportation sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

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. Air Canada is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ACDVF's full-year earnings has moved 62.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ACDVF has returned 8.7% so far this year. In comparison, Transportation companies have returned an average of 6.1%. This means that Air Canada is outperforming the sector as a whole this year.

One other Transportation stock that has outperformed the sector so far this year is Covenant Logistics (CVLG - Free Report) . The stock is up 30.4% year-to-date.

The consensus estimate for Covenant Logistics' current year EPS has increased 4.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Air Canada belongs to the Transportation - Airline industry, which includes 30 individual stocks and currently sits at #148 in the Zacks Industry Rank. This group has gained an average of 9.4% so far this year, so ACDVF is slightly underperforming its industry in this area.

On the other hand, Covenant Logistics belongs to the Transportation - Truck industry. This 13-stock industry is currently ranked #245. The industry has moved +31% year to date.

Air Canada and Covenant Logistics could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.


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