Is the Air Transport Services Group (ATSG) outperforming other transport stocks this year?
Jhe Transportation Group has many attractive stocks, but investors should always look for companies that outperform their peers. 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 one of 143 companies in the Transportation group. The transportation group is currently in second place in the Zacks industry rankings. The Zacks Sector Rankings include 16 different groups and are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these sectors.
The Zacks ranking emphasizes earnings estimates and estimate revisions to find stocks with improved earnings prospects. This system has a long history of success, and these stocks tend to beat the market over the next one to three months. Airline Services currently sports a Zacks ranking of #1 (Strong Buy).
Over the past quarter, the Zacks consensus estimate for ATSG’s full-year earnings rose 2.9%. This is a sign of improving analyst sentiment and a positive trend in the earnings outlook.
According to our latest data, the ATSG has moved about 1.1% since the start of the year. At the same time, transportation stocks lost an average of 14%. As we can see, air transport services are performing better than their sector over the calendar year.
Another transportation stock, which has outperformed the sector so far this year, is Dynagas LNG (DLNG). The stock has returned 17.7% since the start of the year.
For Dynagas LNG, the consensus EPS estimate for the current year has increased by 67.7% over the last three months. 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 64th in the Zacks industry rankings. On average, stocks in this group have lost 13.7% this year, meaning that the ATSG is showing better results in terms of yield since the start of the year.
On the other hand, Dynagas LNG belongs to the Transport – Services industry. This 28-stock industry is currently ranked #55. The industry has evolved by -15.1% since the beginning of the year.
Going forward, investors interested in transportation stocks should continue to pay close attention to air transportation services and Dynagas LNG as they may maintain their strong performance.
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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.