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Is LATAM Airlines Group (LTM) Stock Outpacing Its Transportation Peers This Year?

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Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is LATAM (LTM - Free Report) one of those stocks right now? 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.

LATAM is one of 125 individual stocks in the Transportation sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

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. LATAM is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for LTM's full-year earnings has moved 14% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, LTM has returned 16% so far this year. In comparison, Transportation companies have returned an average of -11.4%. This means that LATAM is performing better than its sector in terms of year-to-date returns.

One other Transportation stock that has outperformed the sector so far this year is Westinghouse Air Brake Technologies (WAB - Free Report) . The stock is up 1% year-to-date.

The consensus estimate for Westinghouse Air Brake Technologies' current year EPS has increased 1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, LATAM is a member of the Transportation - Airline industry, which includes 29 individual companies and currently sits at #154 in the Zacks Industry Rank. On average, this group has lost an average of 21.9% so far this year, meaning that LTM is performing better in terms of year-to-date returns.

On the other hand, Westinghouse Air Brake Technologies belongs to the Transportation - Equipment and Leasing industry. This 10-stock industry is currently ranked #154. The industry has moved -0.1% year to date.

Going forward, investors interested in Transportation stocks should continue to pay close attention to LATAM and Westinghouse Air Brake Technologies as they could maintain their solid performance.


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