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Are Auto-Tires-Trucks Stocks Lagging China Automotive Systems (CAAS) 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. Has China Automotive Systems (CAAS - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

China Automotive Systems is a member of the Auto-Tires-Trucks sector. This group includes 125 individual stocks and currently holds a Zacks Sector Rank of #8. 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 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. China Automotive Systems is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for CAAS' full-year earnings has moved 700% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CAAS has gained about 59% so far this year. In comparison, Auto-Tires-Trucks companies have returned an average of -37.3%. This means that China Automotive Systems is performing better than its sector in terms of year-to-date returns.

Another Auto-Tires-Trucks stock, which has outperformed the sector so far this year, is Cummins (CMI - Free Report) . The stock has returned 9.5% year-to-date.

For Cummins, the consensus EPS estimate for the current year has increased 3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, China Automotive Systems belongs to the Automotive - Original Equipment industry, a group that includes 63 individual companies and currently sits at #184 in the Zacks Industry Rank. On average, this group has lost an average of 35% so far this year, meaning that CAAS is performing better in terms of year-to-date returns.

Cummins, however, belongs to the Automotive - Internal Combustion Engines industry. Currently, this 2-stock industry is ranked #91. The industry has moved +11.6% so far this year.

Going forward, investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to China Automotive Systems and Cummins as they could maintain their solid performance.


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