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Is Federal Signal (FSS) Stock Outpacing Its Conglomerates Peers This Year?

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Investors interested in Conglomerates stocks should always be looking to find the best-performing companies in the group. Is Federal Signal (FSS - Free Report) one of those stocks right now? 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 one of 16 individual stocks in the Conglomerates sector. Collectively, these companies sit at #1 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. Federal Signal is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for FSS' full-year earnings has moved 5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, FSS has returned 38.3% so far this year. In comparison, Conglomerates companies have returned an average of 1.9%. This shows that Federal Signal is outperforming its peers so far this year.

Another stock in the Conglomerates sector, ITT (ITT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 17.2%.

The consensus estimate for ITT's current year EPS has increased 2.1% 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 #50 in the Zacks Industry Rank. On average, this group has gained an average of 1.9% so far this year, meaning that FSS is performing better in terms of year-to-date returns. ITT is also part of the same industry.

Federal Signal and ITT could continue their solid performance, so investors interested in Conglomerates stocks should continue to pay close attention to these stocks.


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