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Are Industrial Products Stocks Lagging DNOW INC (DNOW) This Year?

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The Industrial Products group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. DNOW (DNOW - 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 Industrial Products peers, we might be able to answer that question.

DNOW is a member of our Industrial Products group, which includes 189 different companies and currently sits at #3 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. DNOW is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for DNOW's full-year earnings has moved 6.4% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that DNOW has returned about 15.1% since the start of the calendar year. At the same time, Industrial Products stocks have gained an average of 5.8%. As we can see, DNOW is performing better than its sector in the calendar year.

Another Industrial Products stock, which has outperformed the sector so far this year, is Powell Industries (POWL - Free Report) . The stock has returned 10% year-to-date.

The consensus estimate for Powell Industries' current year EPS has increased 1.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DNOW belongs to the Manufacturing - General Industrial industry, which includes 41 individual stocks and currently sits at #29 in the Zacks Industry Rank. Stocks in this group have gained about 4.8% so far this year, so DNOW is performing better this group in terms of year-to-date returns.

Powell Industries, however, belongs to the Manufacturing - Electronics industry. Currently, this 15-stock industry is ranked #38. The industry has moved +6.1% so far this year.

Investors interested in the Industrial Products sector may want to keep a close eye on DNOW and Powell Industries as they attempt to continue their solid performance.


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