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Is China Yuchai International (CYD) Outperforming Other Auto-Tires-Trucks Stocks This Year?

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For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. Is China Yuchai (CYD - 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.

China Yuchai is one of 96 individual stocks in the Auto-Tires-Trucks sector. Collectively, these companies sit at #10 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 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. China Yuchai is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for CYD's full-year earnings has moved 37.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, CYD has returned 202.9% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -9.7% on a year-to-date basis. This means that China Yuchai is performing better than its sector in terms of year-to-date returns.

Another stock in the Auto-Tires-Trucks sector, Douglas Dynamics (PLOW - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 35%.

In Douglas Dynamics' case, the consensus EPS estimate for the current year increased 4.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, China Yuchai is a member of the Automotive - Original Equipment industry, which includes 50 individual companies and currently sits at #86 in the Zacks Industry Rank. On average, stocks in this group have gained 6.6% this year, meaning that CYD is performing better in terms of year-to-date returns.

Douglas Dynamics, however, belongs to the Automotive - Replacement Parts industry. Currently, this 6-stock industry is ranked #193. The industry has moved -6.6% so far this year.

China Yuchai and Douglas Dynamics could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.


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