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Is Air Canada (ACDVF) Stock Outpacing Its Transportation Peers This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Air Canada (ACDVF - 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? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

Air Canada is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Air Canada is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for ACDVF's full-year earnings has moved 152.4% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, ACDVF has gained about 30.2% so far this year. Meanwhile, stocks in the Transportation group have gained about 13.4% on average. This means that Air Canada is outperforming the sector as a whole this year.

One other Transportation stock that has outperformed the sector so far this year is Allegiant Travel (ALGT - Free Report) . The stock is up 85.5% year-to-date.

The consensus estimate for Allegiant Travel's current year EPS has increased 51.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Air Canada belongs to the Transportation - Airline industry, a group that includes 30 individual stocks and currently sits at #54 in the Zacks Industry Rank. Stocks in this group have gained about 39.8% so far this year, so ACDVF is slightly underperforming its industry this group in terms of year-to-date returns. Allegiant Travel is also part of the same industry.

Air Canada and Allegiant Travel could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.


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