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Are Transportation Stocks Lagging Air Canada (ACDVF) 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. Has Air Canada (ACDVF - Free Report) been one of those stocks this year? 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.

Air Canada is one of 132 companies in the Transportation group. The Transportation group currently sits at #16 within 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. Air Canada is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for ACDVF's full-year earnings has moved 9.5% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, ACDVF has returned 2.5% so far this year. At the same time, Transportation stocks have gained an average of 2.4%. This means that Air Canada is performing better than its sector in terms of year-to-date returns.

Another Transportation stock, which has outperformed the sector so far this year, is Frontier Group Holdings (ULCC - Free Report) . The stock has returned 48.5% year-to-date.

In Frontier Group Holdings' case, the consensus EPS estimate for the current year increased 269.8% 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, a group that includes 32 individual stocks and currently sits at #57 in the Zacks Industry Rank. On average, this group has gained an average of 7.8% so far this year, meaning that ACDVF is slightly underperforming its industry in terms of year-to-date returns. Frontier Group Holdings is also part of the same industry.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Air Canada and Frontier Group Holdings as they could maintain their solid performance.


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