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Is Danaos (DAC) Stock Outpacing Its Transportation Peers This Year?

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

Danaos is a member of the Transportation sector. This group includes 141 individual stocks and currently holds a Zacks Sector Rank of #2. 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 proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Danaos is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for DAC's full-year earnings has moved 7.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, DAC has returned 9.4% so far this year. At the same time, Transportation stocks have lost an average of 15.2%. This shows that Danaos is outperforming its peers so far this year.

Safe Bulkers (SB - Free Report) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 14.9%.

In Safe Bulkers' case, the consensus EPS estimate for the current year increased 13.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Danaos belongs to the Transportation - Shipping industry, a group that includes 43 individual companies and currently sits at #27 in the Zacks Industry Rank. On average, stocks in this group have gained 34% this year, meaning that DAC is slightly underperforming its industry in terms of year-to-date returns. Safe Bulkers is also part of the same industry.

Going forward, investors interested in Transportation stocks should continue to pay close attention to Danaos and Safe Bulkers as they could maintain their solid performance.


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