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Are Auto-Tires-Trucks Stocks Lagging Cummins (CMI) This Year?

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The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is Cummins (CMI - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

Cummins is one of 103 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 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. Cummins is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for CMI's full-year earnings has moved 6.7% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that CMI has returned about 12.6% since the start of the calendar year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of 12.5% on a year-to-date basis. This means that Cummins is outperforming the sector as a whole this year.

Another stock in the Auto-Tires-Trucks sector, REV Group (REVG - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 12.7%.

In REV Group's case, the consensus EPS estimate for the current year increased 6.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, Cummins belongs to the Automotive - Internal Combustion Engines industry, a group that includes 1 individual companies and currently sits at #8 in the Zacks Industry Rank. Stocks in this group have gained about 66.2% so far this year, so CMI is slightly underperforming its industry this group in terms of year-to-date returns.

On the other hand, REV Group belongs to the Automotive - Domestic industry. This 16-stock industry is currently ranked #106. The industry has moved +13.5% year to date.

Investors with an interest in Auto-Tires-Trucks stocks should continue to track Cummins and REV Group. These stocks will be looking to continue their solid performance.


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