The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dorian LPG (LPG) 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.
Dorian LPG is a member of our Transportation group, which includes 138 different companies and currently sits at #8 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 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. Dorian LPG is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for LPG's full-year earnings has moved 195.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, LPG has gained about 48.7% so far this year. Meanwhile, the Transportation sector has returned an average of -14.2% on a year-to-date basis. As we can see, Dorian LPG is performing better than its sector in the calendar year.
Another Transportation stock, which has outperformed the sector so far this year, is Teekay Tankers (TNK). The stock has returned 198.9% year-to-date.
In Teekay Tankers' case, the consensus EPS estimate for the current year increased 176.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Dorian LPG belongs to the Transportation - Shipping industry, a group that includes 41 individual stocks and currently sits at #139 in the Zacks Industry Rank. On average, stocks in this group have gained 31.4% this year, meaning that LPG is performing better in terms of year-to-date returns. Teekay Tankers is also part of the same industry.
Investors interested in the Transportation sector may want to keep a close eye on Dorian LPG and Teekay Tankers as they attempt to continue their solid performance.
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