For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Knot Offshore (KNOP) been one of those stocks this year? 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.
Knot Offshore is a member of the Transportation sector. This group includes 124 individual stocks and currently holds a Zacks Sector Rank of #15. 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 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. Knot Offshore is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for KNOP's full-year earnings has moved 34% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, KNOP has gained about 15.6% so far this year. In comparison, Transportation companies have returned an average of -8.3%. This means that Knot Offshore is outperforming the sector as a whole this year.
Another stock in the Transportation sector, LATAM (LTM), has outperformed the sector so far this year. The stock's year-to-date return is 37%.
The consensus estimate for LATAM's current year EPS has increased 22% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Knot Offshore belongs to the Transportation - Shipping industry, which includes 36 individual stocks and currently sits at #173 in the Zacks Industry Rank. On average, this group has lost an average of 6.3% so far this year, meaning that KNOP is performing better in terms of year-to-date returns.
On the other hand, LATAM belongs to the Transportation - Airline industry. This 29-stock industry is currently ranked #136. The industry has moved -10.6% year to date.
Knot Offshore and LATAM could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.
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KNOT Offshore Partners LP (KNOP): Free Stock Analysis Report LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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