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Is REE Automotive (REE) Outperforming Other Auto-Tires-Trucks Stocks This Year?

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The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is REE Automotive Ltd. (REE - 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 Auto-Tires-Trucks sector should help us answer this question.

REE Automotive Ltd. is one of 102 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #15 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 is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. REE Automotive Ltd. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for REE's full-year earnings has moved 43.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that REE has returned about 52.1% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -5.6% on a year-to-date basis. As we can see, REE Automotive Ltd. is performing better than its sector in the calendar year.

Another stock in the Auto-Tires-Trucks sector, Strattec Security (STRT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 53.9%.

Over the past three months, Strattec Security's consensus EPS estimate for the current year has increased 34.7%. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, REE Automotive Ltd. belongs to the Automotive - Original Equipment industry, a group that includes 51 individual companies and currently sits at #193 in the Zacks Industry Rank. On average, stocks in this group have lost 24.4% this year, meaning that REE is performing better in terms of year-to-date returns. Strattec Security is also part of the same industry.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on REE Automotive Ltd. and Strattec Security as they attempt to continue their solid performance.


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