Is Airline Transportation Services (ATSG) outperforming other transportation stocks this year?

IInvestors interested in transportation stocks should always look for the best performing companies in the group. Airline Services (ATSG) is a stock that can certainly catch the eye of many investors, but do its recent returns compare favorably to those of the sector as a whole? A quick look at the company’s year-to-date performance relative to the rest of the transportation industry should help answer that question.

Air Transport Services is part of our transportation group, which includes 140 different companies and is currently ranked 4th in the Zacks industry rankings. The Zacks Sector Ranking assesses the strength of our 16 individual sector groups by measuring the average Zacks Ranking of individual stocks within the groups.

The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long track record of success, and these stocks tend to be on track to beat the market over the next one to three months. Airline services currently sport a Zacks ranking of #2 (buy).

Over the past three months, the Zacks consensus estimate for ATSG’s annual earnings rose 7.7%. That means analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the latest available data, the ATSG has gained around 7.3% so far this year. At the same time, transportation stocks lost an average of 4%. This means that air transport services are outperforming the whole sector this year.

Another shipping stock, which has outperformed the sector so far this year, is COSCO SHIPPING Holdings Co., Ltd. Unsponsored ADR (CICOY). The stock has returned 4.1% since the start of the year.

Over the past three months, the consensus EPS estimate of COSCO SHIPPING Holdings Co., Ltd. Unsponsored ADR for the current year increased by 60.9%. The stock currently has a Zacks #1 rank (Strong Buy).

Specifically, Airline Services belongs to the Transportation – Airfreight & Freight industry, which comprises 5 individual stocks and is currently ranked 78th in the Zacks industry rankings. Stocks in this group have lost about 4.7% so far this year, so the ATSG is doing better in this group in terms of year-to-date returns.

COSCO SHIPPING Holdings Co., Ltd. Unsponsored ADR, however, belongs to the shipping industry. Currently, this 43-stock industry is ranked #88. The industry is up +20.6% so far this year.

Airline Services and COSCO SHIPPING Holdings Co., Ltd. Unsponsored ADRs may continue their strong performance, so investors interested in transportation stocks should continue to pay close attention to these stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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