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Is Federal Signal (FSS) Outperforming Other Conglomerates Stocks This Year?

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The Conglomerates group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Federal Signal (FSS - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Conglomerates peers, we might be able to answer that question.

Federal Signal is a member of our Conglomerates group, which includes 16 different companies and currently sits at #4 in 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 is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Federal Signal is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for FSS' full-year earnings has moved 1.7% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

According to our latest data, FSS has moved about 17.3% on a year-to-date basis. Meanwhile, the Conglomerates sector has returned an average of 6.3% on a year-to-date basis. As we can see, Federal Signal is performing better than its sector in the calendar year.

ITT (ITT - Free Report) is another Conglomerates stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 12%.

For ITT, the consensus EPS estimate for the current year has increased 1.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Federal Signal is a member of the Diversified Operations industry, which includes 16 individual companies and currently sits at #85 in the Zacks Industry Rank. Stocks in this group have gained about 6.3% so far this year, so FSS is performing better this group in terms of year-to-date returns. ITT is also part of the same industry.

Investors interested in the Conglomerates sector may want to keep a close eye on Federal Signal and ITT as they attempt to continue their solid performance.


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