Is NIO (NIO) Stock Outpacing Its Auto-Tires-Trucks Peers This Year?

For those looking to find strong Auto-Tires-Trucks stocks, it is prudent to search for companies in the group that are outperforming their peers. NIO Inc. (NIO) 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 Auto-Tires-Trucks sector should help us answer this question.

NIO Inc. is one of 103 companies in the Auto-Tires-Trucks group. The Auto-Tires-Trucks group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. NIO Inc. is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NIO's full-year earnings has moved 27.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Based on the most recent data, NIO has returned 14.1% so far this year. Meanwhile, stocks in the Auto-Tires-Trucks group have lost about 11.4% on average. This shows that NIO Inc. is outperforming its peers so far this year.

One other Auto-Tires-Trucks stock that has outperformed the sector so far this year is Strattec Security (STRT). The stock is up 0.3% year-to-date.

For Strattec Security, the consensus EPS estimate for the current year has increased 19.3% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, NIO Inc. belongs to the Automotive - Foreign industry, a group that includes 23 individual companies and currently sits at #75 in the Zacks Industry Rank. Stocks in this group have lost about 6% so far this year, so NIO is performing better this group in terms of year-to-date returns.

In contrast, Strattec Security falls under the Automotive - Original Equipment industry. Currently, this industry has 54 stocks and is ranked #87. Since the beginning of the year, the industry has moved -4.1%.

NIO Inc. and Strattec Security could continue their solid performance, so investors interested in Auto-Tires-Trucks stocks should continue to pay close attention to these stocks.

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

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