Is Bridgestone (BRDCY) Outperforming Other Auto-Tires-Trucks Stocks This Year?

Zacks
03-31

The Auto-Tires-Trucks group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Bridgestone Corp. (BRDCY) 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? By taking a look at the stock's year-to-date performance in comparison to its Auto-Tires-Trucks peers, we might be able to answer that question.

Bridgestone Corp. is a member of the Auto-Tires-Trucks sector. This group includes 100 individual stocks and currently holds a Zacks Sector Rank of #9. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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. Bridgestone Corp. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for BRDCY's full-year earnings has moved 0.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Based on the most recent data, BRDCY has returned 20.5% so far this year. At the same time, Auto-Tires-Trucks stocks have lost an average of 23.4%. This means that Bridgestone Corp. is outperforming the sector as a whole this year.

Another stock in the Auto-Tires-Trucks sector, Dana (DAN), has outperformed the sector so far this year. The stock's year-to-date return is 13.8%.

In Dana's case, the consensus EPS estimate for the current year increased 23.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

To break things down more, Bridgestone Corp. belongs to the Automotive - Foreign industry, a group that includes 23 individual companies and currently sits at #128 in the Zacks Industry Rank. On average, this group has lost an average of 5.3% so far this year, meaning that BRDCY is performing better in terms of year-to-date returns.

Dana, however, belongs to the Automotive - Original Equipment industry. Currently, this 50-stock industry is ranked #130. The industry has moved -7.1% so far this year.

Investors interested in the Auto-Tires-Trucks sector may want to keep a close eye on Bridgestone Corp. and Dana as they attempt to continue their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

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