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Is RollsRoyce (RYCEY) Stock Outpacing Its Aerospace Peers This Year?

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Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Rolls-Royce Holdings PLC (RYCEY - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Aerospace peers, we might be able to answer that question.

Rolls-Royce Holdings PLC is one of 46 companies in the Aerospace group. The Aerospace group currently sits at #1 within 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 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. Rolls-Royce Holdings PLC is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for RYCEY's full-year earnings has moved 15% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that RYCEY has returned about 71.7% since the start of the calendar year. At the same time, Aerospace stocks have gained an average of 3.6%. This means that Rolls-Royce Holdings PLC is outperforming the sector as a whole this year.

TransDigm Group (TDG - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 31.1%.

The consensus estimate for TransDigm Group's current year EPS has increased 2.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Rolls-Royce Holdings PLC belongs to the Aerospace - Defense Equipment industry, which includes 23 individual stocks and currently sits at #59 in the Zacks Industry Rank. On average, stocks in this group have gained 22.3% this year, meaning that RYCEY is performing better in terms of year-to-date returns. TransDigm Group is also part of the same industry.

Investors interested in the Aerospace sector may want to keep a close eye on Rolls-Royce Holdings PLC and TransDigm Group as they attempt to continue their solid performance.


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