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Has Bae Systems (BAESY) Outpaced Other Aerospace Stocks This Year?

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For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Bae Systems PLC (BAESY - Free Report) been one of those stocks this year? 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.

Bae Systems PLC is one of 46 individual stocks in the Aerospace sector. Collectively, these companies sit at #2 in 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 system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Bae Systems PLC is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for BAESY's full-year earnings has moved 1% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the latest available data, BAESY has gained about 17.4% so far this year. Meanwhile, stocks in the Aerospace group have gained about 5% on average. This shows that Bae Systems PLC is outperforming its peers so far this year.

One other Aerospace stock that has outperformed the sector so far this year is Lockheed Martin (LMT - Free Report) . The stock is up 27.5% year-to-date.

Over the past three months, Lockheed Martin's consensus EPS estimate for the current year has increased 1.8%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Bae Systems PLC belongs to the Aerospace - Defense Equipment industry, a group that includes 23 individual stocks and currently sits at #76 in the Zacks Industry Rank. This group has gained an average of 27.7% so far this year, so BAESY is slightly underperforming its industry in this area.

On the other hand, Lockheed Martin belongs to the Aerospace - Defense industry. This 22-stock industry is currently ranked #33. The industry has moved -1.9% year to date.

Bae Systems PLC and Lockheed Martin could continue their solid performance, so investors interested in Aerospace stocks should continue to pay close attention to these stocks.


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