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Are Auto-Tires-Trucks Stocks Lagging China Automotive Systems (CAAS) 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. China Automotive Systems (CAAS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-to-date performance to find out.

China Automotive Systems is one of 123 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #11 within the Zacks Sector Rank. 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 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. China Automotive Systems is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for CAAS' full-year earnings has moved 55% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, CAAS has returned 116.4% so far this year. Meanwhile, the Auto-Tires-Trucks sector has returned an average of -53.5% on a year-to-date basis. This means that China Automotive Systems is performing better than its sector in terms of year-to-date returns.

One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Modine (MOD - Free Report) . The stock is up 96.8% year-to-date.

For Modine, the consensus EPS estimate for the current year has increased 3.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, China Automotive Systems belongs to the Automotive - Original Equipment industry, a group that includes 61 individual stocks and currently sits at #96 in the Zacks Industry Rank. On average, stocks in this group have lost 31.7% this year, meaning that CAAS is performing better in terms of year-to-date returns. Modine is also part of the same industry.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on China Automotive Systems and Modine as they attempt to continue their solid performance.


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